Total Loan Amount
Type of Servicing
12/08/2023 at 5:00 PM ET
County / City / Town
RFPs Listing Date
Deadline for Clarifications
11/27/2023 at 2:00 PM ET
The City of Boston, Massachusetts (the “City”), acting by and through its Chief Financial Officer and Collector-Treasurer, is soliciting proposal statements (“Responses” or “Proposals”) from qualified firms (“Firms” or “Respondents”) interested in providing a tax-exempt direct loan to the City for new money purposes. To evidence the loan the City will provide a bond substantially in the form attached to the form of Bond Purchase Agreement attached hereto as Appendix A. Representations and warranties of the City will be as outlined in the attached Bond Purchase Agreement.
The City does not intend to request a rating for this loan nor to provide any updated disclosure regarding the City or its financial condition. See Part VIII below for available information regarding the City.
The City is a regular issuer of long-term debt, with total outstanding general obligation debt as of November 1, 2023, equal to approximately $1.59 billion. The City’s also has approximately $110.0 million of outstanding Lease Purchase Obligations as of November 9, 2023. The City issues its debt pursuant to applicable laws of The Commonwealth of Massachusetts (“Massachusetts” or the “Commonwealth”), including, in particular, Chapter 643 of the Acts of 1983, as amended (the “Bond Procedure Act”). Interest on the loan will be exempt from gross income for federal income tax purposes and Massachusetts personal income tax, as described in the proposed form of bond counsel opinion attached to the form of Bond Purchase Agreement.
Other than this current transaction, the City does not anticipate any additional borrowings in FY2024, but it may engage in a variety of other transactions, including, for example, interim financing programs, taxable financings, credit-enhanced financings, refinancings, or other forms of debt financing.
Notwithstanding anything herein to the contrary, the City reserves the right to reject any and all Responses, to waive any minor informalities in a Response, to request clarification of information, and to affect any agreement deemed by the City to be in its best interest with one or more Firms. All Responses and their contents will become the property of the City. The City will not reimburse Firms for any costs associated with the preparation or submittal of any Response or for any travel and/or per diem incurred in any presentations of such Responses.
Nothing in this RFP, the Responses, nor in the City’s acceptance of any Response in whole or in part shall obligate the City to complete negotiations with any Firm. The City reserves the right to end, in its sole discretion, negotiations with a Firm at any time up to the consummation of the transactions arising from this RFP.
All Respondents must submit one electronic copy of their Response in “.PDF” file format to each of the Primary Contacts as indicated in Section IV by 5:00 p.m. Eastern Time by the Response Deadline of December 8, 2023.
NOTE: Responses or any parts thereof received by PFM Financial Advisors after the time and date stated above will be rejected as non-responsive to the RFP.
Questions regarding the RFP should be delivered in the manner specified under the heading “Questions,” in Section VI, below.
The RFP Evaluation committee will use the Responses to this RFP to evaluate the proposals of Firms based on their responses to Section X and Section XI below.
Respondents are advised that the City is a public entity and its records, including statements submitted in response to RFPs, are public records unless specifically exempted under M.G.L. Chapter 4, §7, clause twenty-six.
It is the City’s preference that banks bid for each of the tranches and overall. Understanding that not all banks have that capacity, the City recognizes that some banks will only be able to bid on tranche 1 or tranche 2 but not both.
Bidders must bid on all of tranche 1 or tranche 2 or both. Bids for less than the full amount of a tranche will not be accepted.
Similarly, please bid on all of tranche 1 or tranche 2 or both, but not a piece across all maturities.
The City is using a direct purchase because it has already spent a significant portion of the project costs to be funded and a direct purchase has a shorter timeline as compared to a traditional public offering. This DP transaction will also give the City more flexibility with the timing of subsequent offerings.
A public debt rating covenant may be acceptable.
No, the Series 2019B GO Refunding Bond is the only other private placement.
The City has plans to issue approximately $400 million per year over the next 5 years. No official schedule is available at this time.
The City’s GO bonds are not subject to acceleration and the only default that might occur would be a payment default, but in that case, it would only be with respect to whatever payment was due on that particular date. The City is not obligated to pay amounts due on a particular date on a pro rata basis if it didn’t have enough money to make all payments due.
There is no cross-default provision or any other provision that means a default on one bond is a default on all bonds.