HomeMy WebLinkAboutBack-Up - RFP SummaryMiami Police Equipment Lease
RFP Summary
Upfront Escrow or Line Draw (Either)
Proposer
Chase Equipment
Pinnacle
Proposed Structure
Upfront escrow funding or line draws with
term loan
Single takedown of $32 million (escrow)
through 2021, or non revolving line of
credit that City can draw upon for 5 years
(each Individual draw will create a 5 year
schedule)
Security
Subject to annual appropriation, with
documentation within the Agreement
requiring appropriation for payment of all
lease schedules or none at all.
Subject to annual appropriation
Interest Rates
Option 1 — Upfront Escrow Funding with
indicative rates
5 Years: 1.92%
7 Years: 2,05%
Option 2 — Initial two-year draw period
through Oct 31, 2017, wherein index
formula will reset for an additional 2 year
period
5 Years: 1,48%
7 Years: 1.70%
Option 1 - Upfront Escrow, Fixed Rate:
6 Years, Final Maturity 1/1/2021: 1,675%
Option 2- Draw:
3 Year Swap + 48 bps: 1.72% (indicative)
Calculation
5 Year Option: 3-Year Swap = (1.17%"
63,63%) + 1,1755% (escrow) or .7355%
(draw)
7 Year°Option: 4-Year Swap = (1,40%o
63.63 /o) + 1,1592% (escrow) or .8092%
(draw)
Draws set at weekly average of 3-year H15
swap + 48 bps spread
Escrow funding is fixed at above 'Option 1'
Rate
Rate Locked to Closing, or i
Date to be set
Indicative rates will be fixed 3 days prior to
closing.
Escrow funding - Rate is locked
Draws - rate to be set the week prior to
funding
Prepayment Penalty
Pre -payable In whole on any payment date
with make -whole.
Alternatively, pre -payable in whole or in
part after 24 months, for 13 bps (5 year),
18 bps (7 year), or 4 bps (draw program)
premium
Shall be prepayable in whole on any
payment date at a premium of 1 % of the
amount prepaid.
Legal/Other Fees
None
$750 escrow fee if BNY is used
$5,000 bank counsel (if necessary, subject
to negotiation)
Amount
$32,000,000
$32,000,000
Other Conditions
Escrow Deposit with Deutsche Bank
Debt service payments due during draw
period
Broad assignment language
Prepared by: Public Financial Management, Inc.
8/24/2015
Miami Police Equipment Lease
RFP Summary
'proposer
Line Draw
SunTrust (STEFL)
Santander
Proposed Structure
Non -revolving Line of Credit. Lease Line will
expire one year from September 1, 2015. The
Line of Credit will be subject to four (4) annual
renewals by the Lessor, at its sole discretion.
Five-year draw period followed by five-year
level repayment structure
Security
Not specified In proposal
Subject to annual appropriation
Interest Rates
Indicative draw term/rate:
5 years: 2.27%
6 years: 2.37%
7 years: 2.50%
Depending on time of draw (indicative, 5
Year):
March - 1.69% (index spread: 0.9263%)
June - 1.64% (index spread: 0.8763%)
September - 1.57% (index spread: 0.9935%)
December - 1.54% (index spread: 0.9635%)
Calculation
5 years: 64% of the 3 year H.15 Swap (1.25%)
plus 1.47%
6 years: 64% of the 4 year H.15 Swap (1.50%)
plus 1.41%)
7 years: 64% of the 4 year H.15 Swap (1.50%)
plus 1.54%)
September or December draw - 2 Year
LIBOR + index spread
March or June draw - 3 Year LIBOR + index
spread
Rate Locked to Closing, or
Date to be set
Five business days prior to funding, the Draw
Rate Factor shall be adjusted to reflect any
change in the Reference Swap Yield to
preserve the original economic return to the
Lessor.
Rates to be locked 30 days prior to lease
commencement
Prepayment Penalty
Each Draw shall be prepayable in whole on
any payment date at a premium of 1 % of the
amount prepaid,
After the first anniversary date of a specific
Lease Schedule's Commencement Date,
the City may prepay the Lease Schedule on
any payment date with no prepayment
premium.
LegallOther Fees
$100 per draw
Amount
$32,000,000
$32,000,000
Other Conditions
Capital adequacy / taxation language
Prepared by: Public Financial Management, Inc.
8/24/2015
Miami Police Equipment Lease
RFP Summary
(Proposer
Upfront Escrow
PNC Equipment Finance
BMO Harris
US Bank Leasing & Finance
Proposed Structure
tax-exempt lease purchase agreement with
individual lease schedules for each annual
funding need. $1.00 buyout option at end of
term
upfront escrow funding
Funds will be deposited into a no fee U.S.
Bank N.A. escrow account at closing to be
expended over a term not to exceed 3
years.
Security
Subject to annual appropriation
Lessor will have a first priority security
Interest in the Equipment,
The Lease will be structured as a Master
Tax -Exempt Lease Purchase Agreement,
with title in the Lessee's name and
secured by a covenant to budget and
appropriate legally available non -ad
valorem revenues.
Interest Rates
Three years, with two one-year renewals
thereafter (if mutually agreed upon):
1.99%
Non -usage fee of 25 bps
8 Year: 2,0955%
5 Year: 1.80%
Calculation
3 Year Swap * 65% + spread
4.3 year swap rate
Not provided
Rate Locked to Closing, or
Date to be set
Valid to September 3, 2015
Not specified in proposal
Not specified in proposal
Prepayment Penalty
May pay off according to termination values
listed. No schedule may be prepaid within
24 months of its commencement date.
Not specified in proposal
Prepayment is permitted on any payment
date at 103% of outstanding balance
Legal/Other Fees
$250 escrow account setup fee
Lessee will be responsible for all
expenses, including legal fees, filing fees,
and other customary costs for this type of
financing.
None
Amount
$32,000,000
$32,000,000
$32,000,000
Other Conditions
Broad 'assignment language
Prepared by: Public Financial Managetnent, Iuc.
8/2,/20'15