Dickinson Wright Attorneys Recognized for Their Work on Groundbreaking Bond Issue
November 4, 2011
The Bond Buyer, the only comprehensive news outlet for municipal finance, named the City of Ecorse, Michigan Financial Recovery Bonds, Series 2011 (Dedicated Tax) its 2011 Deal of the Year in the small issue category.
Dickinson Wright attorneys Craig Hammond and Wendy Underwood represented Robert W. Baird & Co., Incorporated as underwriter in structuring the $9.5 million financial recovery bond transaction. The deal, which received an “A” rating by Standard & Poor’s, represented an innovative approach to solving the financing problems of an economically distressed community.
The financing team worked closely with the Michigan legislature to amend state legislation to allow the City of Ecorse to use a lockbox mechanism to provide bankruptcy protection of the pledged tax revenues, thereby providing significant bondholder protections for a city under receivership of an emergency manager.
To qualify in the small issuer category, the deals are completed by issuers with an annual revenue of $70 million or less, or beneficiaries with those revenue levels.