On June 30, 2009, Gray & Pannell LLP acted as bond counsel to Bibb County on the closing of a $11,500,000 refunding and improvement revenue bond through the Macon-Bibb County Industrial Authority. The financing was unique in that the Authority issued variable rate bonds backed by the self liquidity of Bibb County instead of a financial institution’s letter of credit.
On June 30, 2009, Gray & Pannell LLP also acted as bond counsel to the Macon Water Authority on the closing of $17,995,000 of refunding revenue bonds. As with the County financing the debt was issued as variable rate bonds but backed by the self-liquidity of the Water Authority.
This type of self-liquidity structure is more common with large issuers such as private universities and infrastructure banks, but uncommon for a governmental entity such as the County or Water Authority. If you would like more information about details of this financing option, please contact Jim Pannell or Jon Pannell.