BOND ISSUANCE COSTS
(Cost Estimates are based in a $1,000,000 bond issued for 20 years)

  Initial Issuance Costs
  On Your Own Bond Bank
Financial Advisory Fee $5,000
Rating Agency Fee min $3,000
Printing & Postage of Official Statement $750 - $1,500
Bond Insurance Premium $3,800 (25bp)
Local Bond Counsel $2,500 - $5,000 $2,500 - $5,000
Underwriter Discount($5-$8 per 1,000 bonds) Included in the Interest Rate Included in the Interest Rate
 
  TOTAL: $15,050 - $18,300 through the inital bond sale if you choose to sell a bond on your own. Through the Bond Bank it would cost $2,500 - $5,000  

  OnGoing Annual Costs
  On Your Own Bond Bank
SEC Disclosure $500
Paying Agent Fee $300 - $500
 
  TOTAL $800 - $1,000 annually and $16,000 to $20,000 over the life of a 20 year bond if you sell a bond on your own. Through the Bond Bank there are no annual costs incurred by the borrower over the life of the bond.  

 

Cost to Sell a Bond On Your Own: $31,050 - $38,300
Cost to Sell a Bond Through The Bond Bank : $2,500 - $5,000

Through the Bond Bank you could Save $28,550 - $33,300 in issuance costs.