Mayor and City Council of Ocean City, Maryland
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.
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 eight separate financing transactions, the most recent of which was the City’s $16.9 million Refunding Bonds of 2022.
The Town’s financing was structured as a non-rated, tax-exempt, general obligation refunding bond with a 5-month forward delivery. Through a competitive solicitation process, the Town received nine financing proposals from local and national banks. A forward bond purchase agreement was signed in January 2022 for delivery in July 2022. The Town secured a sub-2% rate for the full 10-year remaining term of the refunded bonds and achieved net present value savings of approximately $780,000.