City of Salisbury, MD
Tax-Exempt Public Improvement & Refunding Bonds of 2021
Taxable Refunding Bonds of 2021
Incorporated by the State of Maryland in 1854, Salisbury is the county seat in Wicomico County and the largest city in the State’s Eastern Shore region. Salisbury is the principal city of the Salisbury, Maryland-Delaware Metropolitan Area, which consists of Somerset, Wicomico, and Worcester counties in Maryland and Sussex County in Delaware. The City is the commercial hub of the Delmarva Peninsula. Salisbury’s location at the head of the Wicomico River was a major factor in its growth.
Wye River Group was engaged by the City in 2019 following a Request for Proposals for Financial Advisory Services. We have assisted the City with two general obligation bond issuances since our engagement, the proceeds from which financed certain capital projects of the City and refinanced certain outstanding debt obligations.
On August 18, 2021, the City sold Aa3/AA rated, tax-exempt and taxable municipal bonds via competitive, public offering. The City’s tax-exempt bonds received bids from 7 municipal underwriting firms, the lowest of which produced a TIC bid of 1.038%. The new money portion of the bonds were amortized over a 15-year period to produce level annual debt service payments. The current refunding portion was amortized to match the maturities of the refunded bonds and resulted in net present value savings in excess of 7.2% of the refunded bond principal. The City’s taxable bonds received bids from 4 underwriting firms, the lowest of which produced a TIC bid of 0.978%. The bonds were amortized to match the maturity of the refunded bonds and resulted in net present value savings of 6.9% of the refunded bond principal. The interest rates on both series of bonds are fixed to their final maturities. The financing is expected to close on September 1, 2021.