County of Erie, New York

*Preliminary and subject to change

Buffalo Bills Stadium Project

Pursuant to the Stadium Development and Construction Coordinating Agreement (“SDCCA”) between the County, the Erie County Stadium Corporation (“ECSC”) and the Buffalo Bills (operating through Bills Stadium and Events Company, LLC) and the initial Memorandum of Understanding, the County is responsible for contributing $250.0 million for the new Buffalo Bills Stadium. $125.0 million of that contribution will be made from proceeds of the Series 2024B Bonds.

The Series 2024B Bonds are general obligations of the County and are not an obligation of the Buffalo Bills.

FAQ

What are General Obligation (“GO”) Bonds?

GO Bonds are general obligations of the County to which the full faith and credit of the County is pledged towards the repayment. The County sells bonds to borrow the money needed to pay for construction, rehabilitation and repaid of various infrastructure across the County.

When market conditions are favorable, the County may also issue GO Bonds to refinance outstanding indebtedness.

How can I buy GO Bonds issued by the County?

Bonds cannot be purchased directly from the County.  If you do not have an account at one of the brokerage firms participating in the bond sale (noted on this page), you may open one and purchase bonds during the designated order period. If your brokerage firm or financial advisor is not listed as a bond sale participant, you may still have access to bonds through them (and may not need to establish a new account) – please reach out to your broker or financial advisor for further assistance.

Investors are encouraged to begin the new account process well in advance of the sale. Depending on the firm, the brokerage firm’s new account procedures may take some time to process. Each firm has its own requirements for opening an account. The County does not endorse any particular brokerage firm. Additionally, the County does not guarantee that any one of these firms will open an account for an investor.

What is the difference between buying municipal securities in the “primary” market versus the “secondary” market?

New bond issues are sold in the primary market to investors by the underwriter(s) with the issuer receiving the proceeds of the sale. In a new issue, the bond terms are set, including the initial price and the yield. A secondary market transaction does not involve the issuer but is a transaction between two investors – a buyer and a seller. Secondary market transactions involve a broker-dealer who acts either as an intermediary between the buyer and seller, or as a buyer or seller itself. Market conditions, such as prevailing interest rates, supply and demand, and credit quality, among other variables, determine the price of the bonds, which may differ from the original price.

What is a retail order period?

A retail order period is a special, designated order period in a negotiated primary market sale during which only retail investors may place orders for bonds. The retail order period allows retail investors to place orders (through their broker) prior to institutional investor orders. Occasionally, a separate retail order period is not offered for a particular bond sale, so both retail and institutional investors place orders at the same time. When this occurs, retail investors will often, but not always, receive priority. It is important to note that the coupon and pricing information available during the retail order period is preliminary and will not be final until the pricing date, which is typically the following business day. Further, investors who submit an order for bonds during the retail order period have the right to change, or cancel, their order until the order has been confirmed after final pricing.

By placing an order in the retail order period, note that you are not guaranteed access to bonds.  Final allotments are subject to the priority policy, the order book, and the market environment, among other factors.

Why isn’t the interest rate posted before a bond sale?

The final interest rate for negotiated primary market bond sales is not decided until after the end of the order period.  However, during the order period, your broker will be able to provide you with preliminary interest rates.  Final interest rate results will be posted in the Official Statement which can be found by visiting the County’s EMMA (“Electronic Municipal Market Access”) website here.

When will I receive interest payments? When will I get my principal payment back?

When you purchase a bond, your principal investment will be returned to you at maturity. Until maturity, you will receive interest payments, generally semi-annually, until the maturity date of the bond. If you purchased a tax-exempt bond, your interest payments will be exempt from federal income tax and, if you are a New York resident, your interest payments will also be exempt from New York State personal income tax. Prospective investors should consult a tax advisor for tax implications.

What does it mean when a bond or note is tax-exempt?

If a bond or note is tax-exempt, it means that, in the opinion of legal counsel, the interest earned on the bond or note is exempt from federal income taxes and also typically from New York State personal income taxes. Investors should consult their brokers, financial advisors, or tax advisors to obtain comparisons between tax-exempt municipal bonds or notes issued by the County and taxable investment alternatives. Not all County bonds may be tax-exempt.

What are some benefits of purchasing municipal securities?

Municipal bonds can be an important part of a diversified investment portfolio.  Because bonds typically have a predictable stream of payments of principal and interest, many people invest in them to preserve and increase their capital, or to receive dependable interest income. Additionally, the interest earned on municipal securities may be exempt from federal and state income taxes.

It is important to remember that investment objectives, and the best strategies for achieving those objectives, depend on an individual investor’s particular circumstances. The tax advantage investors reap from tax-exempt securities will vary according to their income level. For more information, please contact your tax advisor.

What are some risks involved in investing in municipal securities?

Investing in any bond carries certain risks that can vary from bond issue to bond issue. For example, such risks include, but are not limited to, credit risk and market risk. To evaluate the credit risks associated with a particular bond issue, you should review the offering documents and ratings reports in their entirety and consult your investment advisor or broker-dealer.

What does it mean if a bond is callable?

Most municipal bonds are issued with an early redemption feature, typically referred to as a call option. A call feature gives the issuer of the bond the right, but not the obligation, to “call” back or redeem bonds after a specific amount of time has passed from the time of issuance. If a bond is called early, principal is repaid back in full to the investor and regular interest payments cease.

What if I want to sell my municipal securities prior to maturity?

Most municipal securities may be sold prior to maturity with the assistance of a brokerage firm.  If an investor sells a municipal security prior to maturity, he or she may receive more or less than the original investment depending on prevailing market interest rates, supply and demand, perceived credit quality of the securities, and the costs incurred in connection with the sale, among other variables.  In addition, prospective investors should consult a tax advisor for tax implications.

What are credit ratings?

Most municipal bonds are rated by one or more of the four major rating agencies: Fitch Ratings, Kroll Bond Rating Agency, Moody’s Investors Service, and S&P Global Ratings.  A credit rating is an independent assessment of the creditworthiness of the bonds. An explanation of the significance and status of credit ratings may be obtained from the rating agencies furnishing such rating.  The County’s current bond rating can be found by visiting the County’s EMMA (“Electronic Municipal Market Access”) website here. The County has affirmed ratings of AA for this bond sale from S&P and Kroll.