HomeMy WebLinkAboutExhibitMemorandum — Request for Proposals
To: Prospective Financing Providers
From: PFM Financial Advisors, LLC ("PFM")
Re: Equipment Lease — Request for Proposals
Due April 26, 2019 @ 1:00 pm
On behalf of the City of Miami, Florida (the "City"), PFM is requesting proposals for a non-bank
qualified financing arrangement that would provide the City with up to $36,000,000 which it will use
to acquire through purchase or lease/purchase of equipment for various vehicles, including light and
heavy fleets, fire apparatus, and police vehicles. The City is requesting financing arrangements that
would provide capacity fora two-year draw period (draws can be divided up), followed by a fixed
rate, level repayment structure. Alternatively, proposers may offer a structure whereby the Lessor
will fund the total financing amount in escrow, and there would be draws from the escrow as
equipment is delivered. The financing shall be secured by a contractual obligation of the City to
make semi-annual payments of interest and annual payments of principal. The City -will evaluate all
financing proposals which may range from loans to capital leases.
If you are interested in providing a tax-exempt equipment financing proposal to the City, please
submit a proposal describing your qualifications, outlining all anticipated costs and detailing the
material terms and conditions of the principal legal documents. Outlined below are the items of
information that should be specifically included in your firm's response. Please provide a proposal
that is in line with the requirements noted below, plus supplemental schedules as needed.
• Interest Payment Dates: Semi-annual on January 1 and @y 1
• Principal Payment Dates: January 1 of each year
• Given the different useful lives of the equipment to be financed, please provide different
interest rate formulas for various repayment terms. We would ask that at a minimum, the
proposer provide for 5, 7, and 10 year terms. If proposing the draw period structure, please
account for the two-year draw period occurring before the start of the repayment term.
• Final Maturity Date to be a date no longer than 10 years from end of draw period (or individual
draws)
• 30/360 Day Count Basis
• Expected 2019 Lease Start Date of June 1, 2019 (subject to change)
• Structure: Draws for up to 2 years (this may include multiple draws, as in a draw program), or
upfront escrow funding
• Level repayment schedule
• The City Attorney's Office will provide any necessary tax opinions.
1. Discuss any limitations on the type of projects that can be financed.
2. Detail optional redemption provisions, if offered.
3. Provide the maximum duration of the Lease. Provide a schedule of terms for each asset class
if available.
4. Funding amounts: include funding limits either by draw or total funding.
2222 Ponce De Leon Blvd 305 448-6992
3rd Floor 305 448-7131 fax
Coral Gables, FL www.pfm.com
0 1A I I
33134
April 22, 2019
Memorandum — Request for Proposals
To: Prospective Financing Providers
From: PFM Financial Advisors, LLC ("PFM")
Re: Equipment Lease — Request for Proposals
Due April 26, 2019 @ 1:00 pm
On behalf of the City of Miami, Florida (the "City"), PFM is requesting proposals for a non-bank
qualified financing arrangement that would provide the City with up to $36,000,000 which it will use
to acquire through purchase or lease/purchase of equipment for various vehicles, including light and
heavy fleets, fire apparatus, and police vehicles. The City is requesting financing arrangements that
would provide capacity fora two-year draw period (draws can be divided up), followed by a fixed
rate, level repayment structure. Alternatively, proposers may offer a structure whereby the Lessor
will fund the total financing amount in escrow, and there would be draws from the escrow as
equipment is delivered. The financing shall be secured by a contractual obligation of the City to
make semi-annual payments of interest and annual payments of principal. The City -will evaluate all
financing proposals which may range from loans to capital leases.
If you are interested in providing a tax-exempt equipment financing proposal to the City, please
submit a proposal describing your qualifications, outlining all anticipated costs and detailing the
material terms and conditions of the principal legal documents. Outlined below are the items of
information that should be specifically included in your firm's response. Please provide a proposal
that is in line with the requirements noted below, plus supplemental schedules as needed.
• Interest Payment Dates: Semi-annual on January 1 and @y 1
• Principal Payment Dates: January 1 of each year
• Given the different useful lives of the equipment to be financed, please provide different
interest rate formulas for various repayment terms. We would ask that at a minimum, the
proposer provide for 5, 7, and 10 year terms. If proposing the draw period structure, please
account for the two-year draw period occurring before the start of the repayment term.
• Final Maturity Date to be a date no longer than 10 years from end of draw period (or individual
draws)
• 30/360 Day Count Basis
• Expected 2019 Lease Start Date of June 1, 2019 (subject to change)
• Structure: Draws for up to 2 years (this may include multiple draws, as in a draw program), or
upfront escrow funding
• Level repayment schedule
• The City Attorney's Office will provide any necessary tax opinions.
1. Discuss any limitations on the type of projects that can be financed.
2. Detail optional redemption provisions, if offered.
3. Provide the maximum duration of the Lease. Provide a schedule of terms for each asset class
if available.
4. Funding amounts: include funding limits either by draw or total funding.
5. Provide sample master lease documents preferably with Florida local governments. Please
specifically note unique conditions related to Florida leases. If sample documents are not
available, provide detailed terms and conditions.
6. The financings shall be secured by a contractual obligation of the City to make semi-annual
payments of interest and annual payments of principal.
7. Please provide a not -to -exceed fee for bank counsel for the Lease.
The City is requesting that proposals be submitted by April 26, 2019 at 1:00 pm to the following
email addresses: Pete Varona (varonap Q2 fin. com) and Sergio Masvidal (masvidalsQ2fm.com). Any
inquiries requesting clarifications of this solicitation or additional information shall also be submitted
to PFM.
The City will not accept any offer with capital adequacy or other interest rate adjustment
language with respect to changes to tax law. The only interest rate adjustment provision the
City will consider is one imposed by the IRS and due from the holder which results solely
from actions of the City.
Included in its written proposal, each Proposer shall agree to the following certifications which will
be included, among others, as representations in the financing documents:
• You have an understanding of the City's Self -Insurance Policy with respect to the vehicles.
Section 768.28, Florida Statute, Provides for waiver of sovereign immunity in tort actions or claims against the
state and its agencies and subdivisions. The present statutory limit of recovery in the absence of special relief
granted by the Florida legislature is $200,000 per person and $300,000 per incident. Under the protection of
this sovereign immunity limit, .Florida Statutes 768.28 and Chapter 440, Florida Statutes covering Workers'
Compensation, the City has established a self-insured program to provide coverage for almost all areas of liability
including Workers' Compensation, General Liability, Automotive Liability, Police Professional Liability, Public
Of c ials' Liability, and Employment Practices Liability.
• The City shall not deliver any offering document with respect to the financing arrangement.
• You have conducted your own investigation, to the extent you deem satisfactory or sufficient,
into matters relating to business affairs or conditions (either financial or otherwise) of the City.
For additional financial information please use the following link
http://archive.miam.igov.com/F.inance/finaciallnfc).html providing access to the
Comprehensive Annual Financial Reports and Compliance Reporting. While this financing
arrangement will not be rated, the City's current underlying credit ratings for their Special
Obligation debt (secured by eligible Non -Ad Valorem revenues) is Aa3, AA-, and A+ by
Moody's, S&P, and Fitch, respectively.
• No inference should be drawn that you, in the acceptance of any financing documents, are
relying on the City Attorney as to any such matters other than the legal opinions which may be
rendered by such counsel.
• You have made such independent investigation of the financing risks associated with the
financing as you, in the exercise of sound business judgment, consider being appropriate under
the circumstances.
• You have knowledge and experience in financial and business matters and are capable of
evaluating the merits and risks of participating in the financing with the City and you can bear
the economic risk of such participation.
• You will also represent that you have a present intent to hold the Bond subject to this
transaction to maturity, earlier redemption, mandatory tender, or for your loan portfolio, and
have no present intention of reselling or otherwise disposing of all or a part of such lease. You
acknowledge that PFM Financial Advisors LLC ("Municipal Advisor") is relying on the
foregoing represeritation and based on this representation this transaction meets the
requirements for being a qualifying exception for purposes of MSRB Rule G-34, and the
Municipal Advisor is excepted and released from the requirement to request a CUSIP
assignment on behalf of the City pursuant to MSRB Rule G-34 for the lease.
• You are not acting as a broker or other intermediary, and are entering into the financing as an
investment for your own account and not with a present view to resale or other distribution to
the public.
• You are a bank, trust company, savings institution, insurance company, dealer, investment
company, pension or profit-sharing trust, or qualified institutional buyer as contemplated by
Section 517.061(7), Florida Statutes.
THE CITY WILL ULTIMATELY SELECT THE PROPOSAL THAT IS DEEMED TO BE
THE BEST OVERALL VALUE TO THE CITY, INCLUDING THE INTEREST RATE,
PREPAYMENT TERMS, AND OTHER TERMS AND CONDITIONS. THE CITY
RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS AND RESERVES THE RIGHT
TO WAIVE, IF PERMITTED BY LAW, ANY IRREGULARITY OR INFORMALITY IN ANY
PROPOSAL.
April 25, 2019
VIA ELECTRONIC MAIL
Pedro Varona
Senior Analyst
Public Financial Management, Inc.
255 Alhambra Circle, Suite 404
Coral Gables, FL 33134
RE: Equipment Lease — Request for Proposal
Dear Mr. Varona:
18685 Main Street, Suite 101-601
Huntington Beach - CA ■ 92648
Santander Bank is pleased to submit the following proposal for your review and
acceptance. Our proposed terms and conditions are as follows:
Company Overview: Santander Bank is a market leader in providing cost-effective
financing to public entities nationwide. With over $3 billion in financings we have the
knowledge, flexibility and financial strength that is unmatched in the finance industry.
Our public finance team of professionals has a thorough understanding of the municipal
market to ensure transactions are completed quickly, efficiently and cost effectively.
Santander Bank was founded in Northern Spain in 1857, with over $1.7 trillion in assets.
Santander is one of the world's strongest, safest and most successful banks and has
grown to become one of the five largest banks in the world by profit.
Structure: Tax-exempt Installment Financing Agreement ("Lease")
Borrower: City of Miami, FL ("City")
Lender: Santander Bank, N.A. ("Santander")
Equipment: General Fleet Vehicles: 176 of units (max term 7 years)
Police Department: 302 of units (max term 7 years)
Fire Department: 23 of units (max term 10 years)
Heavy Fleet: 30 of units (max term 10 years)
Amount Financed: $36,000,000
Option #1 (Two Year Draw Program):
Financing Term: Financing arrangement that will provide capacity for a two-
year draw period, followed by a fixed rate, level repayment
structure for 5, 7 or 10 Years. Each draw period (Lease
Schedule) will be created on a quarterly basis (unless
otherwise approved by Santander) at which time an
interest rate will be calculated and locked for a closing
Financing Proposal
Santander Bank
April 25, 2019
Page 2 of 6
within 10 business days. Each Lease Schedule will consist
of annual principal payments and semi-annual interest
payments beginning January 1 of the following calendar
year after Lease Commencement.
Interest Rates: Interest Rates will be indexed and locked 10 business
days prior to a Lease Commencement. Each Lease
Commencement will occur on the 1St of the following
months (unless otherwise approved by Santander):
5 Year Term:
Month Closing
Interest Rate
Ave Life
Ave Life Libor
(as of 4/18/2019)
Index Spread
March
2.49%
3.0 Years
2.4168%
0.7016%
June
2.46%
3.0 Years
2.4168%
0.6716%
September
2.43%
2.0 Years
2.4795%
0.5952%
December
2.43%
2.0 Years
2.4795%
0.5952%
7 Year Term:
Month Closing
Interest Rate
Ave Life
Ave Life Libor
(as of 4/18/2019)
Index Spread
March
2.56%
4.0 Years
2.3978%
0.7856%
June
2.54%
4.0 Years
2.3978%
0.7656%
September
2.51%
3.0 Years
2.4168%
0.7216%
December
2.50%
3.0 Years
2.4168%
0.7116%
10 Year Term:
Month Closing
Interest Rate
Ave Life
Ave Life Libor
(as of 4/18/2019)
Index Spread
March
2.71%
5.0 Years
2.4035%
0.9314%
June
2.69%
5.0 Years
2.4035%
0.9114%
September
2.70%
5.0 Years
2.4035%
0.9214%
December
2.69%
5.0 Years
2.4035%
0.9114%
Option #2 (Escrow Funding Program):
Financing Term: Financing arrangement that will provide capacity to fund
into an escrow account where the City will have a fixed
rate, level repayment structure for 5, 7 or 10 Years that will
consist of annual principal payments and semi-annual
interest payments beginning January 1 of the following
calendar year after Lease Commencement. The City will
seek reimbursement over a two year period.
Interest Rates: Interest Rates will be indexed and locked 10 business
days prior to Lease Commencement (unless otherwise
approved by Santander):
18685 Main Street ■ Suite 101-601 - Huntington Beach ■ CA ■ 92648
(714) 374-5289 (480) 848-7758 Cell
Financing Proposal
Santander Bank
April 25, 2019
Page 3 of 6
Interest Rates:
Term
Interest Rate
Ave Life
Ave Life Libor
as of 4/18/2019
Index Spread
5 Years
2.46%
3.0 Years
2.4168%
0.67160%
7 Years
2.54%
4.0 Years
2.3978%
0.7656%
10 Years
2.69%
5.0 Years
2.4035%
0.9114%
Interest Rates and Payments will be indexed according to
changes to its respective Average Life based on Term and
Closing Date.
For example 5 Year Term (March Closing):
For every change in the (3) Three Year Libor, an adjustment will be
made to the Interest Rate and Payment.
Sample Calculation: Using April 18th Libor Rate, the formula for
calculating the Interest Rate will be as follows:
3 Year Libor Rate (as of April 18, 2019) = 2.4168%
(3 Year Libor Rate x 0.74%) + Indexing Spread = Interest Rate
(2.4168% x 0.74%) + 0.6716% = 2.4600%
If Libor goes up 15 basis points:
Adjusted 3 Year Libor Rate = 2.5668% (2.4168% + 0.15%)
(3 Year Libor Rate x 0.74%) + Indexing Spread = Interest Rate
(2.5668% x 0.74%) + 0.6716% = 2.5710%
If Libor goes down 15 basis points:
Adjusted 3 Year Libor Rate = 2.2668% (2.4168% - 0.15%)
(3 Year Libor Rate x 0.74%) + Indexing Spread = Interest Rate
(2.2668% x 0.74%) + 0.6716% = 2.3490%
Projected Closing Date: On or about June 1, 2019
Prepayment Terms: 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.
18685 Main Street ■ Suite 101-601 ■ Huntington Beach ■ CA ■ 92648
(714) 374-5289 (480) 848-7758 Cell
Financing Proposal
Santander Bank
April 25, 2019
Page 4 of 6
Escrow Agreement: If needed, proceeds from this financing will be deposited
into an Escrow Agreement with Bank of Oklahoma
("BOK"). BOK charges a one-time fee of $1,500. If
acceptable to the City, the proceeds will be deposited into
the Federated Treasury Obligations Fund (Symbol —
TOTXX and CUSIP #609934N120 with a current YTD
Total Return NAV of 0.55%). Interest earnings are subject
to change based on market conditions.
Tax Assumption: Interest income received by Santander will be exempt from
Federal and State Income Tax.
Credit Review: Upon Credit Approval, Santander will provide the City of
Miami with a committed credit facility for a period of 24
months (per the bid specs) subject to annual credit review
and approval until the $36,000,000 is fully utilized.
Fees/Closing Costs: None other than those listed herein, however the City will
be responsible for any fees or expenses with respect to its
(i) legal and bond counsel and (ii) title, and registration
fees, if any. Santander is willing to finance any expenses
related to closing the transaction.
Documentation: It is anticipated the City and Santander will utilize their
current Master Lease Purchase Agreement between
Santander Bank, N.A. and City of Miami dated October 30,
2015 subject to both parties having the opportunity to
review the document for minor cleanup or modifications if
deemed necessary.
Contract Specifications: Santander understands and agrees to the certifications
outlined in the RFP but is unable able to agree to any
"other" certifications that have not been disclosed at this
time.
This proposal is subject to final credit approval and final documentation. Please feel free
to call me at 714-374-5289 with any questions or further clarification.
Thank you for the opportunity to present this proposal.
Sincerely,
Bruce Block
Senior Vice President
18685 Main Street ■ Suite 101-601 - Huntington Beach - CA - 92648
(714) 374-5289 (480) 848-7758 Cell
Financing Proposal
Santander Bank
April 25, 2019
Page 5 of 6
Sample Amortization Schedule
Lease Commencement Date: June 1, 2019
5 Year Term: Rate = 2.46%
Grand Totals 38,314,034.56 2,314,034.56 36,000,000.00
7 Year Term: Rate = 2.54%
Date
Payment
Interest
Principal
Balance
6/1/2019
36,000,000.00
1
1/1/2020
7,483,154.23
517,507.74
6,965,646.49
29,034,353.51
2
7/1/2020
357,122.55
357,122.55
0.00
29,034,353.51
3
1/1/2021
7,483,154.23
357,122.55
7,126,031.68
21,908,321.83
4
7/1/2021
269,472.36
269,472.36
0.00
21,908,321.83
5
1/1/2022
7,483,154.23
269,472.36
7,213,681.87
14,694,639.96
6
7/1/2022
180,744.07
180,744.07
0.00
14,694,639.96
7
1/1/2023
7,483,154.23
180,744.07
7,302,410.16
7,392,229.80
8
7/1/2023
90,924.43
90,924.43
0.00
7,392,229.80
9
1/1/2024
7,483,154.23
90,924.43
7,392,229.80
0.00
Grand Totals 38,314,034.56 2,314,034.56 36,000,000.00
7 Year Term: Rate = 2.54%
Grand Totals 39,329,624.77 3,329,624.77 36,000,000.00
18685 Main Street ■ Suite 101-601 ■ Huntington Beach ■ CA ■ 92648
(714) 374-5289 (480) 848-7758 Cell
Date
Payment
Interest
Principal
Balance
6/1/2019
36,000,000.00
1
1/1/2020
5,418,856.61
534,367.74
4,884,488.87
31,115,511.13
2
7/1/2020
395,166.99
395,166.99
0.00
31,115,511.13
3
1/1/2021
5,418,856.61
395,166.99
5,023,689.62
26,091,821.51
4
7/1/2021
331,366.13
331,366.13
0.00
26,091,821.51
5
1/1/2022
5,418,856.61
331,366.13
5,087,490.48
21,004,331.03
6
7/1/2022
266,755.00
266,755.00
0.00
21,004,331.03
7
1/1/2023
5,418,856.61
266,755.00
5,152,101.61
15,852,229.42
8
7/1/2023
201,323.31
201,323.31
0.00
15,852,229.42
9
1/1/2024
5,418,856.61
201,323.31
5,217,533.30
10,634,696.12
10
7/1/2024
135,060.64
135,060.64
0.00
10,634,696.12
11
1/1/2025
5,418,856.61
135,060.64
5,283,795.97
5,350,900.15
12
7/1/2025
67,956.43
67,956.43
0.00
51350,900.15
13
1/1/2026
5,418,856.61
67,956.46
5,350,900.15
0.00
Grand Totals 39,329,624.77 3,329,624.77 36,000,000.00
18685 Main Street ■ Suite 101-601 ■ Huntington Beach ■ CA ■ 92648
(714) 374-5289 (480) 848-7758 Cell
Financing Proposal
Santander Bank
April 25, 2019
Page 6 of 6
10 Year Term: Rate = 2.69%
Grand Totals 41,040,501.16 5,040,501.16 36,000,000.00
18685 Main Street ■ Suite 101-601 ■ Huntington Beach ■ CA ■ 92648
(714) 374-5289 (480) 848-7758 Cell
Date
Payment
Interest
Principal
Balance
6/1/2019
36,000,000.00
1
1/1/2020
3,880,324.33
565,985.42
3,314,338.91
32,685,661.09
2
7/1/2020
439,622.14
439,622.14
0.00
32,685,661.09
3
1/1/2021
3,880,324.33
439,622.14
3,440,702.19
29,244,958.90
4
7/1/2021
393,344.70
393,344.70
0.00
29,244,958.90
5
1/1/2022
3,880,324.33
393,344.70
3,486,979.63
25,757,979.27
6
7/1/2022
346,444.82
346,444.82
0.00
25,757,979.27
7
1/1/2023
3,880,324.33
346,444.82
3,533,879.51
22,224,099.76
8
7/1/2023
298,914.14
298,914.14
0.00
22,224,099.76
9
1/1/2024
3,880,324.33
298,914.14
3,581,410.19
18,642,689.57
10
7/1/2024
250,744.17
250,744.17
0.00
18,642,689.57
11
1/1/2025
3,880,324.33
250,744.17
3,629,580.16
15,013,109.41
12
7/1/2025
201,926.32
201,926.32
0.00
15,013,109.41
13
1/1/2026
3,880,324.33
201,926.32
3,678,398.01
11,334,711.40
14
7/1/2026
152,451.87
152,451.87
0.00
111334,711.40
15
1/1/2027
3,880,324.33
152,451.87
3,727,872.46
7,606,838.94
16
7/1/2027
102,311.98
102,311.98
0.00
7,606,838.94
17
1/1/2028
3,880,324.33
102,311.98
3,778,012.35
3,828,826.59
18
7/1/2028
51,497.72
51,497.72
0.00
3,828,826.59
19
1/1/2029
3,880,324.33
51,497.74
3,828,826.59
0.00
Grand Totals 41,040,501.16 5,040,501.16 36,000,000.00
18685 Main Street ■ Suite 101-601 ■ Huntington Beach ■ CA ■ 92648
(714) 374-5289 (480) 848-7758 Cell
32
2222 Ponce de Leon Blvd 786-671-7480
Third floor www.pfm.com
Coral Gables, FL
33134
May 3, 2019
Memorandum
To: City of Miami, Florida
From: PFM Financial Advisors, LLC
Re: Lease Financing Proposal Results and Recommendation
The purpose of this memorandum is to summarize the City of Miami, Florida (the "City") request for a tax-
exempt lease financing and the subsequent proposals received, as well as provide PFM Financial
Advisors LLC's ("PFM") recommendation for the most attractive proposal. In April of 2019, PFM requested
proposals for a tax-exempt lease financing with estimated terms of five, seven, and ten years. The total
estimated principal amount of the lease is slightly over $36 million, including issuance costs. Prospective
bidders could provide for either an upfront escrow structure, where the entire $36 million was funded
upfront, or a draw structure whereby the City would make periodic draws over a two year time interval.
In response to the lease financing request, seven firms submitted proposals on April 26, 2019. Proposals
were received from the following firms:
• Capital Bank
• JP Morgan
• PNC Equipment Finance
• Regions Bank
• Santander Bank
• SunTrust Equipment Financing & Leasing
• U.S. Bank Leasing & Finance
PFM's reviewed the responses based on the financial terms (rate quoted), as well as other terms to
ensure that no onerous or non-standard provisions were included that might impact the City's financial
flexibility or credit ratings. Upon review of all of the proposals for both financial impact as well as bank
terms, we found that most of the proposals included language customary for this type of transaction.
Upon review of proposals, Santander Bank provided the lowest rate for the draw structure option, and
provided competitive rates for the escrow structure (usually second to either JP Morgan or Regions
Bank). In addition, Santander provided the City with the most generous prepayment terms across the
spectrum, allowing for prepayment on any lease schedule after one year with no prepayment premium.
Finally, Santander Bank already has a lease program with the City, which should simplify the document
review and adoption process, especially given that no additional terms or conditions were found in the
bank's proposal. Rates will be locked ten days prior to any individual lease commencement.
Given the above, PFM's recommendation is for the City to engage Santander Bank for the lease financing
program. As mentioned, the rates proposed by Santander Bank are the lowest proposed for the draw
structure, which is the same structure that the City currently utilizes with their police equipment lease, and
the proposal includes standard terms and provisions that do not create additional risk or burden to the
City. Please feel free to contact us with any questions or comments.
Miami Equipment Lease (2019)
RFP Summary
Prepared by PFM Financial Advisors LLC 4/26/2019
Upfront Escrow or Line Draw (Either)
Pro po -se r
JP Morgan
Santander
SunTrust (STEFL)
Upfront escrow funding with all
Upfront escrow funding with all
Upfront escrow funding with all
Proposed Structure
terms/assets to one schedule, or two-year
terms/assets to one schedule, or two-year
terms/assets to one schedule, or two-year
draw period with level repayment structure
draw period with level repayment structure
draw period with level repayment structure
of 5, 7, or 10 years
of 5, 7, or 10 years
of 5, 7, or 10 years
Security
Subject to annual appropriation
Subject to annual appropriation
Security interest in property
Option 1: Upfront escrow structure
Option 1: Upfront escrow structure
Option 1: Upfront escrow structure
Indicative draw term/rate:
Indicative draw term/rate:
Fixed draw term/rate:
5 years: 2.401%
5 years: 2.46%
5 years: 2.61%
7 years: 2.571 %
7 years: 2.54%10
7 years: 2.682%
10 years: 2.671%
years: 269%
.
10 years: 2.79%
Interest Rates
Option 2: Draw Structure
Option 2: Draw Structure (assuming June
Option 2: Draw Structure
Indicative draw term/rate:
Closings)
Indicative draw term/rate:
Indicative draw term/rate:
5 years: 2.481 %
°
5 years: 2.46%
5 years: 2.61 %
7 years: 2.641%
7 years: 2.54/0
7 years: 2.682%
10 years: 2.731%
10 years: 2.69%
10 years: 2.79%
Rate Calculation: (IR Swap 79%) +
Rate Calculation: (LIBOR *74%) + Spread
Rate Calculation: (IR Swap * 79%) +
Calculation
Spread = All -In Rate
= All -In Rate
Spread = All -In Rate
individual rates seen in proposal
individual rates seen in proposal
individual rates seen in proposal
Rate Locked to Closing, or
Rate to be locked 3 days prior to closing
Rates to be locked 10 days prior to lease
Set at closing for escrow structure, or at
Date to be set
commencement
closing for draw structure
After the first anniversary date of a
specific Lease Schedule's
Prepayable in whole on any payment date
Prepayment Penalty
Pre -payable in whole on any payment
Commencement Date, the City may
at a premium of 3% of the amount prepaid
date with make -whole.
prepay the Lease Schedule on any
in year 1, 2% in year 2, 1 % in year 3
payment date with no prepayment
premium.
$ 0 escrow fee if BNY is used
If needed, escrow account with Bank of
Legal/Other Fees
$55,, bank counsel (if necessary,
Oklahoma 500 one time fee)
$1,
( )
$250 fee if escrow used
subject to negotiation)
$250 documentation fee per schedule
Amount
$36,000,000
$36,000,000
$36,000,000
Right to adjust pricing proposed to
Capital adequacy/ taxation language
Other Conditions
maintain economic return as a result of
material adverse change
May modify rates with market disruption
Prepared by PFM Financial Advisors LLC 4/26/2019
Miami Equipment Lease (2019)
RFP Summary
Line Draw
Prepared by PFM Financial Advisors LLC 4/26/2019
Pro oser
Capital Bank
PNC Equipment Finance
Proposed Structure
Two-year draw period followed by level
Two-year draw period with level
repayment structure of 5, 7, or 10 years
repayment structure of 5, 7, or 10 years
Contractual Obligation of the City to make -
Security
semi-annual payments and annual
Subject to annual appropriation
payments of principal, and a CB&A from
non -ad valorem revenues
Indicative draw term/rate:
7 years: 2.93%
Indicative draw term/rate:
9 years: 3.02%
5 years: 2.60%
Interest Rates
12 years: 3.15%
7 years: 2.80%
(2 year draw period + 5, 7, or 10 year
10 years: 3.16%
repayment)
Rate Calculation: (IR Swap) + Spread =
Calculation
Not provided
All -In Rate
individual rates seen in proposal
Rate Locked to Closing, or
Not specified
Rate to be locked 3 days prior to closing
Date to be set
Pre -payable in whole on any payment
May pay off after second anniversary of
Prepayment Penalty
date with make -whole.
each lease commencement, with three
percent premium
Legal/Other Fees
$5,000 bank legal fee
Amount
$36,000,000
$36,000,000
Rating downgrade fee adjustment
Other Conditions
Fee if funding less than $22 million over 2
year draw period
Prepared by PFM Financial Advisors LLC 4/26/2019
Miami Equipment Lease (2019)
RFP Summary
Prepared by PFM Financial Advisors LLC 4/26/2019
Upfront Escrow
Fpr -.poser
Regions
US Bank Leasing & Finance
Funds will be deposited into a no fee U.S.
Proposed Structure
upfront escrow funding
Bank N.A. escrow account at closing to be
expended over a term not to exceed 2
years.
The financing will be structured as a Tax -
Exempt Master Lease/Purchase
Security
Subject to annual appropriation
Agreement dated and secured by a
covenant to return the equipment in the
event of a non -appropriation or default.
Indicative draw term/rate:
Fixed draw term/rate:
7 years: 2.45%
7 years: 2.786%
9 years: 2.68%
9 years: 2.87%
Interest Rates
12 years: 2.90%
12 years: 3.052%
(2 year draw period from escrow + 5, 7, or
(2 year draw period from escrow + 5, 7, or
10 year repayment)
10 year repayment)
Rate Calculation: (IR Swap) + Spread =
Calculation
All -In Rate
Not provided
individual rates seen in proposal
Rate Locked to Closing, or
Not specified in proposal
Rates locked
Date to be set
Prepayable on or after a certain date
(depending on term) without penalty
Prepayment is permitted on any payment
Prepayment Penalty
5 -Year: 1/1/23
date after 13 months at 103% of
7 -Year: 1/1/24
outstanding balance
10 -Year. 1/1/26
Trust fee of $2,000
Legal/Other Fees
Bank Counsel Fee of $7,500 (if drafting all
docs, $25,000)
Amount
$36,000,000
$36,000,000
Other Conditions
Prepared by PFM Financial Advisors LLC 4/26/2019