HomeMy WebLinkAboutExhibit 3 - PresentationCity of Miami, Florida
Special Obligation Refunding
Direct Bank Placement, Series 2014
'PFM
The PFM Group
Public Financial Management, Inc.
PFM Asset Management LLC
PFM Advisors
255 Alhambra Circle, Suite 404
Cora! Gables, FL 33134
305-448-6992 ext. 3070 305-
448-7131 fax
Market Conditions —Yield Curve
Tax exempt rates are higher than all time historic lows on the sale date but still
remain below historic averages
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
1
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
MMD Range (over past 10 years) —10 YR Average Current Rates
2
Refunded Bonds
• The Series 2002A and Series 2002C Bonds refunded existing bonds and loans
— The Series 2002A Bonds were issued to advance refund the Series 1989 Guaranteed
Entitlement Revenue Bonds and the Series 1995 Special Obligation Non -Ad Valorem
Bonds
— The Series 2002C Bonds were issued to retire loans by the City from the Sunshine State
Governmental Financing Commission Tax -Exempt Commercial Paper Revenue Notes
that were entered into on May 12, 1994
• The refunded bonds are currently callable at Par
— The Series 2002A Bonds are currently callable at Par beginning September 1, 2012
— The Series 2002C Bonds are currently callable at Par beginning October 1, 2012
Series Bond Maturity Date Interest Rate Par Amount Call Date Call Price
2002A BOND 9/1/2015 4.25% $ 960,000 8/31/2014 100
2002A BOND 9/1/2016 4.38% 1,000,000 8/31/2014 100
2002A BOND 9/1/2017 4.50% 1,040,000 8/31/2014 100
2002A BOND 9/1/2018 4.63% 1,090,000 8/31/2014 100
2002A BOND 9/1/2019 4.75% 1,135,000 8/31/2014 100
2002A BOND 9/1/2020 4.80% 1,190,000 8/31/2014 100
2002A BOND 9/1/2021 4.88% 1,245,000 8/31/2014 100
2002A BOND 9/1/2022 5.00% 1,300,000 8/31/2014 100
2002A BOND 9/1/2023 5.00% 1,365,000 8/31/2014 100
2002A TERM 9/1/2024 5.00% 1,430,000 8/31/2014 100
2002A TERM 9/1/2025 5.00% 1,500,000 8/31/2014 100
2002C BOND 10/1/2015 4.20% 2,375,000 8/31/2014 100
2002C BOND 10/1/2016 4.30% 2,475,000 8/31/2014 100
2002C BOND 10/1/2017 4.38% 2,580,000 8/31/2014 100
Total $ 20,685,000
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Direct Placement Structure
• PNC provided a bid for a Tax -Exempt Fixed Rate Bank Loan in an amount up to $22
Million for the refunding
— The Loan would be fixed through maturity (current indicative rate is 3.389%; locked after
commission approval)
The Loan will be completed via a Direct Purchase by PNC (a "sophisticated investor)
— The direct placement structure offers specific benefits to the City:
• Only sophisticated investor(s) will be eligible to buy the loan
• Official Statement is not required
• Credit ratings are not required
• Continuing disclosure requirements are specific to the bank
• Reduced costs of issuance and administrative time
• The proceeds of the loan will be used to current refund all of the outstanding Special
Obligation Bonds, Series 2002A and a portion of the Series 2002C
— The Series 2002A Bonds being refunded are currently outstanding in the amount of
$13,255,000 and mature on September 1st in years 2015-2025.
— The Series 2002C Bonds being refunded are currently outstanding in the amount of
$7,430,000, and mature and October 1st in years 2015-2017.
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Estimated Refunding Savings
e The refunding generated over $90,000 in cash flow savings ($1.08 million Net
Present Value savings)
• 5.25% savings of the refunded par amount
Date
Prior Debt
Service
Refunding Debt
Service
Savings
7/1/2015
7/1/2016
7/1/2017
7/1/2018
7/1/2019
7/1/2020
7/1/2021
7/1/2022
7/1/2023
7/1/2024
7/1/2025
7/1/2026
$ 952,288.76
4,217,013.76
4,211,651.26
4,201,726.26
1,566,682.51
1,559,520.01
1,559,003.76
1,555,096.88
1,547,250.00
1,545,625.00
1, 540, 750.00
1,537,500.00
$ 863,343.94
4,119, 997.96
4,119, 094.16
4,104,293.00
1,470,933.40
1,462,637.70
1,463,325.30
1,457,657.30
1,450, 803.16
1,452,762.86
1,448,197.50
1,442,276.56
$ 88,944.82
97,015.80
92,557.10
97,433.26
95,749.11
96,882.31
95,678.46
97,439.58
96,446.84
92,862.14
92,552.50
95,223.44
$ 25,994,108.20 $ 24,855,322.84 $ 1,138,785.36
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Estimated Timetable
Below is preliminary timetable for the Series 2014 Refunding
FINANCING SCHEDULE
CITY OF MIAMI, FL
SPECIAL OBLIGATION REFUNDING BONDS
SERIES 2014
SERIES 2002A 84 SERIES 2002C
Preliminary Financing, Schedule
fzinT ic. 2014
Juno
t $ U T W 7 F
11 2 '3 '4 F. 7
1 '
.10:11 12 13 14
i5 t 16 17 18 19 20 21
122 23 t 24 25 25 27 28
129 120
Date
June 18
June 27
July 2
July 8
July 10
July 11
July 24
July 29
July 31
August 1
July
7 1At T F
• 1 2 3 '4 6
, 7 8 . 911 12
,
13 .14 15 15 -17 18 .19
20 21 22 221 24 215 t26
27 '28 '29 30 31
Action
August
S 14 T 7 F S
'1 2
;;', 4 5 5 7 9
10 11 12 12 1,:t 15 15
17 18 19 20 21 22 23
24 25 2.6 27 28 29 30
Finance Committee recommends nansaction for Commission Approval
Bond Counsel circulates first draft refunding resolution
Comments due an first draft refunding resolution
2z4 Draft of Resolution due and Circulate all Bank Loan documents
Working Group Call
Submit documents to Commission Agenda Coordinator
Commission Approval of Loan Documents
Lock Interest Rate for 2014 Refunding Bond
Pre -Closing (2:00 pm)
Close Loan
6