HomeMy WebLinkAboutBack-Up - RFP SummaryMiami Police Equipment Lease
RFP Summary
Prepared by; Public Financiai Management, Inc, 8/24/2015
Upfront Escrow or Line Draw (Either)
Pro oser
Chase Equipment
Pinnacle
Single takedown of $32 million (escrow)
Upfront escrow funding or line draws with
through 2021, or non -revolving line of
Proposed Structure
term loan
credit that City can draw upon for 5 years
(each Individual draw will create a 5 year
schedule)
Subject to annual appropriation, with
Security
documentation within the Agreement
Subject to annual appropriation
requiring appropriation for payment of all
lease schedules or none at all.
Option 1 — Upfront Escrow Funding with
indicative rates
5 Years: 1.92%
7 Years: 2.05%
Option 1 - Upfront Escrow, Fixed Rate:
6 Years, Final Maturity 1/1/2021; 1,675%
Interest Rates
Option 2 — Initial two-year draw period
through Oct 31, 2017, wherein index
Option 2- Draw:
formula will reset for an additional 2 year
3 Year Swap+ 48 bps: 1.72% (indicative)
period
5 Years: 1.48%
7 Years: 1.70%
5 Year Option: 3 -Year Swap = (1.17%"
Draws set at weekly average of 3 -year H15
63.63%) + 1.1755% (escrow) or .7355%
swap + 48 bps spread
Calculation
(draw)
7 Year Option: 4 -Year Swap = (1,40%"
Escrow fundis is fixed at above'O tion 1'
g p
63,63%) + 1,1592% (escrow) or .8092%o
Rate
(draw)
Rate Locked to Closing, or
Indicative rates will be fixed 3 days prior to
Escrow funding - Rate locked
Draws -rate to be set the week prior to
Date to be set
closing.
funding
Pre -payable in whole on any payment date
with make -whole.
Shall be prepayable in whole on any
Prepayment Penalty
Alternatively, pre -payable in whole or in
payment date at a premium of 1 % of the
part after 24 months, for 13 bps (5 year),
amount prepaid.
18 bps (7 year), or 4 bps (draw program)
premium
$750 escrow fee if BNY is used
Legal/Other Fees
None
$5,000 bank counsel (if necessary, subject
to negotiation)
Amount
$32,000,000
$32,000,000
Escrow Deposit with Deutsche Bank
Broad assignment language
Other Conditions
Debt service payments due during draw
eriod
Prepared by; Public Financiai Management, Inc, 8/24/2015
Miami Police Equipment Lease
RFP Summary
Ptepeted by: Public Fivanciil Ivinnngetnent, Inc. 8/24/2015
Line Draw
Pro oser
SunTrust (STEFL)
Santander
Non -revolving Line of Credit. Lease Line will
expire one year from September 1, 2015, The
Five-year draw period followed by five-year
Proposed Structure
Line of Credit will be subject to four (4) annual
level repayment structure
renewals by the Lessor, at its sole discretion.
Security
Not specified In proposal
Subject to annual appropriation
Depending on time of draw (indicative, 5
Indicative draw term/rate:
Year):
5 years: 2.27%
March - 1.69% (index spread: 0.9263%)
Interest Rates
6 years: 2.37%
June - 1.64% (Index spread: 0.8763%)
7 years: 2.50%
September - 1.57% (index spread: 0.9935%)
December - 1.54% (index spread: 0.9635%)
5 years: 64% of the 3 year H.15 Swap (1.25%)
September or December draw - 2 Year
plus 1.47%
LIBOR + index spread
6 years: 64% of the 4 year H.15 Swap (1:50%)
Calculation
plus 1.41%)
March or June draw - 3 Year LIBOR + index
7 years: 64% of the 4 year H.15 Swap (1.50%)
spread
plus 1.54%)
Five business days prior to funding, the Draw
Rate Locked to Closing, or
Rate Factor shall be adjusted to reflect any
Rates to be locked 30 days prior to lease
Date to be set
change in the Reference Swap Yield to
commencement
preserve the original economic return to the
Lessor.
After the first anniversary date of a specific
Each Draw shall be prepayable in whole on
Lease Schedule's Commencement Date,
Prepayment Penalty
any payment date at a premium of 1 % of the
the City may prepay the Lease Schedule on
amount prepaid,
any payment date with no prepayment
premium.
Legal/Other Fees
$100 per draw
Amount
$32,000,000
$32,000,000
Capital adequacy/ taxation language
Other Conditions
Ptepeted by: Public Fivanciil Ivinnngetnent, Inc. 8/24/2015
Miami Police Equipment Lease
RFP Summary
Prepared by, Public Finaticiai Management, Lm, 8/24/2015
Upfront Escrow
Pro oser
PNCEquipment Finance
BMO Harris
US Bank Leasing & Finance
tax-exempt lease purchase agreement with
Funds will be deposited into a no fee U.S.
Proposed Structure
individual lease schedules for each annual
upfront escrow funding
Bank N.A. escrow account at closing to be
funding need. $1.00 buyout option at end of
expended over a term not to exceed 3
term
years.
The Lease will be structured as a Master
Tax -Exempt Lease Purchase Agreement,
Lessor will have a first priority security
with title in the Lessee's name and
Security
Subject to annual appropriation
Interest in the Equipment,
secured by a covenant to budget and
appropriate legally available non -ad
valorem revenues.
Three years, with two one-year renewals
thereafter (if mutually agreed upon):
Interest Rates
8 Year: 2.0955%
5 Year: 1.80%
1.99%
Non -usage fee of 25 bps
Calculation
3 Year Swap * 65%° + spread
4.3 year swap Yate
Not provided
Rate Locked to Closing, or
Valid to September 3, 2015
Not specified in proposal
Not specified in proposal
Date to be set
May pay off according to termination values
Prepayment is permitted on any payment
Prepayment Penalty
listed. No schedule may be prepaid within
Not specified in proposal
date at 103% of outstanding balance
24 months of its commencement date.
Lessee will be responsible for all
Legal/Other Fees
$250 escrow account setup fee
expenses, including legal fees, filing fees,None
and other customary costs for this type of
financing.
Amount
$32,000,000
$32,000,000
$32,000,000
Broad 'assignment' language
Other Conditions
Prepared by, Public Finaticiai Management, Lm, 8/24/2015