ITN 06-26 Non Revolving Line of Credit

The Utilities Commission of the City of New Smyrna Beach, Florida is issuing Invitation to Negotiate (ITN) 06-26 to procure a tax-exempt variable rate non-revolving line of credit liquidity facility with a principal amount not to exceed $30 million. This facility will finance various capital improvements to New Smyrna Beach Utilities' (NSBU) combined utility system, which serves approximately 32,203 electric customers, 29,882 water customers, 24,742 sewer customers, and 4,121 water reuse customers across a service area of approximately 71.9 square miles for electric service and 60.5 square miles for water and wastewater services. The facility will be outstanding for up to twelve months, with interest calculated on a variable rate basis tied to SIFMA, SOFR, or a similar publicly available index, and interest-only payments made monthly on a 30/360-day basis. The facility must be prepayable without penalty in whole or in part at any time, and NSBU anticipates an initial draw of approximately $1 million at closing with additional draws as needed for capital improvements. Proposals are evaluated on proposed fees, spreads, and covenants (80 points) and the institution's long-term and short-term ratings (20 points) for a total of 100 points. The critical deadlines include a questions deadline of January 28, 2026 at 2:30 PM, an addendum due date of February 3, 2026 at 5:00 PM, and sealed electronic proposals due February 10, 2026 at 2:30 PM ET, with evaluation beginning February 11, 2026, NSBU approval of the recommended award scheduled for March 23, 2026, and closing anticipated on March 31, 2026.

Payment of principal and interest will be secured by a first lien on net revenues derived from the utility system's operations, issued on parity with NSBU's outstanding Series 2020 Revenue Bonds currently valued at $61,425,000. 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. All costs relating to financing, loan document preparation and printing, and the lender's reasonable counsel fees will be paid by NSBU upon successful closing. The solicitation does not identify specific set-asides or restrictions on the types of organizations eligible to respond, indicating that qualified financial institutions meeting the evaluation criteria are welcome to submit proposals. NSBU reserves the right to reject any proposals and is not obligated to close on the facility if terms are unsatisfactory. No incumbent vendors or existing infrastructure integration requirements were specified in the procurement documents.