Ocean City GO

The Town of Ocean City, Maryland, is an Atlantic resort town located in Worcester County, Maryland. The Town is a frequent destination for vacationers in the Mid-Atlantic region of the United States with over 7,000 permanent residents and an estimated 8 million visitors annually. During the summer months, Ocean City becomes the second most populated municipality in Maryland, after Baltimore. Its strong financial profile, budgetary flexibility and strong management and financial policies provide the basis for the Town’s AA/Aa2/AA+ general obligation credit ratings by S&P, Moody’s and Fitch.

$7,765,000
Mayor and City Council of Ocean City, Maryland
General Obligation Municipal Purpose and Refunding Bonds of 2020 (Tax-Exempt)
General Obligation Municipal Purpose Bonds of 2020 (Taxable)

Wye River Group Served as Ocean City’s Independent Financial Advisor for this Transaction.

Project Overview

Wye River Group was engaged by the Town of Ocean City in 2017 following a Request for Proposals for Financial Advisory Services. Since our engagement, we have assisted the Town with five separate financing transactions, the most recent of which was a general obligation bond issuance that refinanced an outstanding equipment financing and financed certain capital projects of the Town.

Financing Overview

The Town’s financing was structured as two series (tax-exempt and taxable) of AA/Aa2/AA+ rated municipal bonds that were sold via competitive, public offering on February 27, 2020. The tax-exempt series received bids from 9 municipal underwriting firms, the lowest of which produced a TIC bid of 1.703%. The taxable series of bonds received bids from 7 municipal underwriting firms, the lowest of which produced a TIC bid of 1.432%. The tax-exempt bonds were amortized over a 16-year period and the taxable bonds were amortized over 4 years, to produce aggregate level annual debt service payments. The interest rates on the bonds are fixed for the term of the financing. The financing closed on March 12, 2020.

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