City of Rehoboth Beach, Delaware
General Obligation Refunding Bond
The City comprises approximately 1.6 miles along the Atlantic Coast, a few miles from the mouth of the Delaware River in Delaware. It was first granted its municipal charter by the Delaware legislature in 1891 changed its name in 1937 to the “City of Rehoboth Beach”. As a tourist destination, the City hosts more than 3.5 million visitors annually to its award-winning beach and mile-long boardwalk.
Wye River Group served as the City’s independent financial advisor in connection with the Series 2022 Bonds. The proceeds of the 2022 Bonds will (i) refinance its outstanding Series 2016A and B General Obligation bonds, (ii) refinance outstanding Series 2007 General Obligation bonds and (iii) fund transaction costs associated with the financing.
The City’s financing was structured as a non-rated, tax-exempt, general obligation bond. Through a competitive solicitation process, the City received five financing proposals from local and national banks, ultimately selecting JP Morgan Chase as its preferred lending partner. The City received a competitive fixed rate of 1.61% for the 15-year term of the financing which resulted in more than $1 million in net present value savings (6.3% of refunded principal amount). The financing closed on January 21, 2022.