North Slope Borough, Alaska
General Obligation Bonds, Series 2021C (General Purpose)
Series 2021D (Schools)
|Client & Transactional Partners||North Slope Borough, Alaska||Our Role||Sole Manager|
On Wednesday, November 3, 2021, KeyBanc Capital Markets (KBCM) closed on the General Obligation Bonds, Series 2021C and Series 2021D (collectively, the “2021CD Bonds”), for the North Slope Borough, Alaska (the “Borough”). KBCM served as sole manager for both series of bonds, which totaled $90,465,000 in par. The proceeds from the 2021CD Bonds will be used primarily to finance the costs of acquisition, construction, and equipping of certain capital improvements for the Borough, specifically for education facilities in the case of the 2021D Bonds. The 2021CD Bonds carried ratings of AA from S&P, AA from Fitch, and AA+ from Kroll Bond Rating Agency.
The North Slope Borough encompasses an area of 94,887 square miles in northern Alaska (north of the Arctic Circle), constituting approximately 15% of the State of Alaska. It extends 650 miles from Point Hope on the Chukchi Sea to the Canadian border and 225 miles south from Point Barrow, the northernmost point in the State. Prudhoe Bay, among the largest oil fields in the United States and the site of extensive commercial oil and gas exploration and production, is in the northern portion of the Borough, as is the origination point of the 800-mile trans-Alaska pipeline system. As of January 15, 2021, the Borough’s total population was estimated to be 17,924. KBCM enjoys a strong relationship with the Borough, frequently meeting with Borough staff to provide financing ideas and market information. This is KBCM’s 15th sole-managed transaction for the Borough since 2010 and 2nd sole-managed transaction for the Borough in 2021. Despite challenging market conditions on the day of sale, the all-in true interest cost for the transaction ended below 1%.