HomeMy WebLinkAboutTableCity of Miami
Proposed Series 2008 Refunding Bonds
Sunrmcrrp of Transaction Mechanics
Swap
Counterparty
Under Swap Agreement
Swap Fixed Payer Rate
City Receives 1 month LIBOR (1)
Swap Consulting Fee
Net Swap Payment (4)
Variable Rate set at
1 month LIBOR
Fixed Swap Rate
Set at 6.43%
Variable Rate Bonds
Holders
Variable Bond Rate
as set by Remarketing Agent
Possible
Historical Current Bank Bond After
Situation Situation Situation Refunding
6.43% 6.43% 6.43% 6.43%
-2.50% -2.50% -2.50% -2.50%
0.02%
3.93% 3.93%
3,93% 3.95%
Series 2006 Bond
City pays variable rate to bond holders which
is set by remarketing agent:
Historically approximating 1 mo. Libor 2.50% 2.50%
Reflective of credit issues of bond insurer (2) 5.50%
Bank Bond Rate (1st 60 days - Prime Rate) 5.00%
Liquidity Fees
Remarketing Agency Fees
Series 2006 Interest Cost
Estimated Net Interest Costs (3)
0.11% 0.61% 0.61% 0.55%
0.08% •0.08% 0.08% 0.08%
2.69% 6.19% 5.69% 3.13%
6.62% 10.12% 9.62% 7.08%
Outstanding Amount of Bonds (4) $29,010,000 $29,010,000 $29,010,000 $29,300,000
Footnotes
(1) The 1 month LIBOR rate is as of 6/22/08 which was the latest reset and it is used for an indicative rate for illustration.
(2) The remarketing rate is as of the latest reset at 6/22/08.
(3) Does not reflect the additional payment of a flat $250,000 per year from the swap counterparty to the City.
(4) Issuance expenses of approximately $290,000 will be incurred as a result of the refunding transaction.