HomeMy WebLinkAboutBack-Up Documents0 PfM
Request for Proposals
Suite 404 305-448-6992
255 Alhambra Circle 305-448-7131 fax
Coral Gables, FL 33146 www.pfm.com
October 12, 2017
To: Prospective Notes Providers
From: PFM Financial Advisors on behalf of the City of Miami
Re: City of Miami, Florida: Request for Bank Notes Proposals — Refunding of Special
Obligation Bonds
As financial advisor to the City of Miami, Florida (the "City") PFM Financial Advisors,
LLC ("PFM") is seeking proposals on behalf of the City in order to refund two separate
series of outstanding bonds through separate bank loans to be evidenced by separate
promissory notes of the City (the "Notes"). The Notes will be awarded based on overall
borrowing cost and terms most favorable to the City, in the City's sole discretion. The
financings will be issued via a separate resolutions to be approved by the City
Commission with substantially the same terms as the existing resolutions. Additional
terms, not inconsistent with the Resolution, may be set forth in separate Loan
Agreements.
There will be an issuance of two separate notes:
• a tax-exempt note in the not -to -exceed amount of $61.5 million, and
• a taxable note in the amount of not -to -exceed $7.5 million.
Respondents may choose to bid for either or both of the Notes, and the City may award
the Notes to separate bidders based on responses received. The payment of the
principal and interest on the Notes are special obligations of the City payable solely
from and secured by the amounts actually deposited into the pledged funds and
accounts under the bond resolution. The bond resolution includes a covenant of the City
to budget and appropriate Non -Ad Valorem revenues.
The proceeds of the tax-exempt Note will be used to advance refund a portion of the
City's outstanding Special Obligation Bonds, Series 2011A. The Series 2011A Bond
maturities being refunded are currently outstanding in the amount of $52,975,000 and
mature on February 1St in years 2022-2031. The proceeds of the taxable Note will be
used to advance refund a portion of the City's outstanding Non -Ad Valorem Refunding
Revenue Bonds, Taxable Pension Series 2009. The Series 2009 Bond maturities being
refunded are currently outstanding in the amount of $6,385,000 and mature on
December 1St in years 2020-2025.
THE NOTES ARE SPECIAL OBLIGATIONS OF THE CITY AND ARE PAYABLE SOLELY IN THE
MANNER AND TO THE EXTENT SET FORTH IN THE RESOLUTION AND LOAN AGREEMENT, IF
ANY. THE NOTES SHALL NOT BE OR CONSTITUTE A GENERAL OBLIGATION OF THE CITY
WITHIN THE MEANING OF THE CONSTITUTION OF THE STATE OF FLORIDA BUT SHALL BE
PAYABLE SOLELY FROM AND SECURED BY A LIEN UPON AND A PLEDGE OF THE PLEDGED
FUNDS AND ACCOUNTS IN THE MANNER AND TO THE EXTENT PROVIDED IN THE
RESOLUTION. NO NOTEHOLDER SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE
OF THE AD VALOREM TAXING POWER OF THE CITY OR TAXATION IN ANY FORM ON ANY REAL
OR PERSONAL PROPERTY TO PAY SUCH NOTES OR THE INTEREST THEREON, NOR SHALL
ANY NOTEHOLDER BE ENTITLED TO PAYMENT OF SUCH PRINCIPAL OR INTEREST FROM ANY
OTHER FUNDS OF THE CITY OTHER THAN AS PROVIDED IN THE RESOLUTION.
FURTHERMORE, NO NOTEHOLDER SHALL EVER HAVE A LIEN ON ANY PROJECT FINANCED
WITH THE PROCEEDS OF THE NOTES OR ANY OTHER REAL OR PERSONAL PROPERTY OF THE
CITY, EXCEPT FOR THE PLEDGED FUNDSIN THE MANNER AND TO THE EXTENT PROVIDED IN
THE RESOLUTION.
The City has other Non -Ad Valorem obligations outstanding issued under separate
resolutions and/or loan agreements. The City's Non -Ad Valorem bonds currently
maintain credit ratings of "A2," "A" and "A+" from Moody's, Standard & Poor's, and Fitch
Ratings, respectively.
Below is a link to additional financial information regarding the City:
http://www. m iam igov.com/Finance/pages/Financial I nfo/financial I nfo.asp
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Other key terms as follows:
Tax -Exempt Note:
• Interest Payment Dates: February 1 and August 1, commencing February 1,
2018
• Principal Payment Dates: February of each year, commencing February 1, 2018
• Final Maturity Date: February 1, 2031
• 30/360 Day Count Basis
• Preliminary Amortizations:
Series 2017
Preliminary Amortization
Average Life: 8.5 Years
Date
Principal
2/1/2018
1,145,000
2/1/2019
855,000
2/1/2020
880,000
2/1/2021
900,000
2/1/2022
5,010,000
2/1/2023
5,155,000
2/1/2024
5,305,000
2/1/2025
5,470,000
2/1/2026
5,635,000
2/1/2027
5,795,000
2/1/2028
5,975,000
2/1/2029
6,145,000
2/1/2030
6,325,000
2/1/2031
6,510,000
Total
61,105,000
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Taxable Note:
• Interest Payment Dates: June 1 and December 1, commencing June 1, 2018
• Principal Payment Dates: December of each year, commencing December 1,
2018
• Final Maturity Date: December 1, 2025
• 30/360 Day Count Basis
• Preliminary Amortizations:
Series 2017
Preliminary Amortization
Average Life: 6.5 Years
Date
Principal
12/1/2018
130,000
12/1/2019
135,000
12/1/2020
640,000
12/1/2021
635,000
12/1/2022
640,000
12/1/2023
640,000
12/1/2024
640,000
12/1/2025
3,770,000
Total
7,230,000
Calendar of Events:
October 12, 2017 — RFP released
October 30, 2017 — RFP Proposals due
November 8, 2017 —Finance Committee approves recommendation
November 16, 2017 — City Commission meeting to adopt resolution, award Notes
November 21, 2017 —Closing
The City is requesting proposals be submitted by Monday, October 30, 2017 at 2:00
PM Eastern Time to the City and to the City's Financial Advisor (PFM) at the following
email addresses: Epaschal(a)miamigov.com, masvidals(a)pfm.com, and
varonap(a)pfm.com. Each proposal shall include the interest rate (either actual interest
rate if fixed, or an index if the rate is to be locked), prepayment provisions, fees, and
other terms/conditions. The Notes will be issued under the same covenants detailed
in the City's prior resolutions for similarly secured debt. The Notes do not
contemplate funding a debt service reserve fund. Please keep in mind when
submitting proposals that the City will not accept any offer with capital adequacy
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or other interest rate adjustment language with respect to changes to tax code or
banking regulations. The City will accept taxability language and interest rate
adjustments related to any actions or inactions the City may take.
The successful bidder will be required to deliver certain certificates at closing including
one to the effect that they are a "qualified institutional investor" and an "accredited
investor" having sufficient knowledge and experience in financial and business matters
and are capable of evaluating the merits and risks of the Notes, that they have had
been provided access to and have reviewed such information concerning the City as
they have deemed necessary, that they understand the Notes are not a general
obligation of the City, but are payable solely by the revenues to be budgeted and
appropriated for such payment and deposited into the funds and accounts described in
the applicable resolution and loan agreement, if any, and that they are not relying on
disclosures from the City or its advisors. The successful purchaser must also represent,
certify and covenant that they are purchasing the Notes for its own account and without
any present intent to distribute the Notes. The Notes may be transferred in whole but
not in part and only to qualified institutional buyers.
The City has appointed separate Bond Counsel for each of the Notes who will prepare
all financing documents and render the approving opinion, and bank counsel's role will
be review only. PFM will serve in the sole capacity of financial advisor to the City and
not in the role as placement agent for the Notes. Any inquiries or requests concerning
clarification or solicitation for additional information shall be submitted to PFM at the
email addresses above.
THE CITY RESERVES THE RIGHT TO REJECT ANY OR ALL BIDS AND RESERVES
THE RIGHT TO WAIVE, IF PERMITTED BY LAW, ANY IRREGULARITY OR
INFORMALITY IN ANY PROPOSAL.
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