M&S Serves As Special Tax Counsel On $219,000,000 Bond Issue
The Firm recently closed one of the largest bond issues in recent memory for Harford County, Maryland in our capacity as Special Tax Counsel.
Miles & Stockbridge P.C. recently closed one of the largest bond issues in recent memory for Harford County, Maryland in our capacity as Special Tax Counsel. The $219,000,000 bond issue consisted of various components, including Build America Bonds, Advance Refunding Bonds and New Money Bonds and was one of the most complicated bond issues ever done by Harford County. These Bonds were used to fund various capital projects throughout the County, consisting of infrastructure, public schools, public safety facilities, water and sewer projects, etc.
The Build America Bonds ("BABS") component is a new form of bond, recently established by Congress, which allows the issuer to receive a direct federal subsidy from the Treasury. According to the Financial Advisor to the transaction, the use of BABS saved Harford County in excess of $10,000,000 in interest cost. The determination of the amount of the subsidy, in light of the multiple components of the Bonds and varying sales prices, created some intricate tax and legal issues.
