ITN_06-26_Non-Revolving_Line_of_Credit_Evaluation_Committee_Results.pdf

This evaluation committee results document reflects the proposal scoring for ITN 06-26, an Invitation to Negotiate issued by the Utilities Commission of the City of New Smyrna Beach, Florida, to procure a tax-exempt variable rate non-revolving line of credit liquidity facility with a principal amount not to exceed $30 million. The facility will finance capital improvements to New Smyrna Beach Utilities' combined utility system serving approximately 32,203 electric customers, 29,882 water customers, 24,742 sewer customers, and 4,121 water reuse customers. The solicitation required sealed electronic proposals due February 10, 2026 at 2:30 PM ET, with evaluation commencing February 11, 2026. Four financial institutions submitted proposals for evaluation, with an anticipated award recommendation to the NSBU board on March 23, 2026, and closing targeted for March 31, 2026. The facility will have an outstanding term of up to twelve months with interest-only payments made monthly on a 30/360-day basis at variable rates tied to SIFMA, SOFR, or a similar publicly available index.

Evaluation of proposals was conducted by three evaluators using a 100-point scoring system comprising 80 points for proposed fees, spreads, and covenants, and 20 points for the institution's long-term and short-term credit ratings. Bank of America Merrill Lynch received the highest combined score of 98.33 points, followed by JP Morgan Chase & Co. with 68.33 points, Regions Bank with 53.33 points, and Truist Bank with 30.00 points. Payment of principal and interest will be secured by a first lien on net revenues from the utility system's operations on parity with NSBU's outstanding Series 2020 Revenue Bonds valued at $61,425,000. All financing costs, including loan document preparation, printing, and the lender's reasonable counsel fees, will be paid by NSBU upon successful closing. The facility is not a general obligation of the Commission or City, and interest is excludable from gross income under Section 103 of the Internal Revenue Code.