Okaloosa County BOCC — August 5, 2014 — First Southwest - Presentation

Contacts Mark P. Galvin Senior Vice President Mark.Galvin@firstsw.com 450 S. Orange Avenue, Suite 460 Orlando, Florida 32801 407.426.9611 www.firstsw.com Financing Plan - Shalimar Annex Project August 5, 2014 Okaloosa County, Florida Financing Plan Goals and Objectives • To Provide Approximately $22 Million in Construction Proceeds - Sheriffs Complex - Crestview Courthouse - Administrative Complex O K A L O O S A • Most Effective Financing Option with Lowest Possible Interest Rates / Yields C O U N T Y , • Maximize Future Financing Flexibility F L O R I D A • Level Annual Debt Service Structure Member FINRA & SIPC © 2014 1 First Southwest Company Financing Options Okaloosa County, Florida Financing Options: Bank Loan Bank Loan Bond Issue 15 Year 20 Year 30 Year Scenario Level Debt Level Debt Level Debt No DSRF No DSRF Surety Bond Max Annual Debt Service $2,137,750 $1,795,150 $1,445,588 Project Amount $22,000,000 $22,000,000 $22,000,000 Net Proceeds $22,940,000 $23,055,000 $23,442,697 Final Maturity 10/1/2029 10/1/2034 10/1/2044 Total Debt Service $29,903,375 $34,063,775 $41,853,088 O K A L O O S A Capitalized Interest (1 Year) $860,250 $979,838 $996,175 All-In TIC 3.79% 4.29% 4.53% - Preliminary and Subject to Change C O U N T Y , - Estimated cost of issuance for bond issue is approximately $150k & $5.5 UW per bond - Estimated cost of issuance of $75 for bank loan - Estimated Bond Insurance cost of 30bps and Surety Bond of 3% - Uninsured AA/A+ Market Rates as of 7/9/2014 +25bps F L O R I D A - Estimated NBQ Bank Rate as of 7/9/2014 + 25bps - Includes 1 Year of Capitalized Interest for Bond Issue & Bank Loan - Assumes Surety Bond for DSRF for Bond Issue Member FINRA & SIPC © 2014 2 First Southwest Company Debt Profile – General Fund Revenue Debt Taxable Sales Tax Revenue Capital Improvement Revenue Bonds, Series 2009B Sales Tax Revenue Bonds, Series Bond, Series 2011 (Build America Bonds) 2009A Original Amount $3,600,000 $23,875,000 $2,740,000 Par Outstanding $3,329,000 $23,875,000 $1,250,000 Interest Rates 3.72% 4.25%-6.375% 3.00% Final Maturity 10/1/2023 10/1/2039 10/1/2020 Max Annual Debt Service $269,365 $1,559,752 $655,500 Callable 10/1/2021 @ 100% 10/1/2019 @ 100% Non-Callable O K A L O O S A Debt Service Reserve None Surety Surety Purpose New Money New Money New Money C O U N T Y , Security Second Guaranteed Revenues Sales Tax Revenues Sales Tax Revenues F L O R I D A Credit Bank Loan Assured Guaranty Assured Guaranty Underlying Rating None NR/AA/A+ NR/AA/A+ Member FINRA & SIPC © 2014 3 First Southwest Company Debt Profile – General Fund Revenue Debt Okaloosa County, Florida All Outstanding General Fund Debt by Series $2,000,000 $1,800,000 $1,600,000 $1,400,000 Debt Service $1,200,000 $1,000,000 $800,000 O K A L O O S A $600,000 $400,000 C O U N T Y , $200,000 $0 F L O R I D A Fiscal Year Ending Series 2009B (BABs) Series 2011 Series 2009A Member FINRA & SIPC © 2014 4 First Southwest Company Overview of the Sales Tax Revenue Bonds, Series 2009A&B  Issuance Date: December 17, 2009  Purpose of the Bonds – To Finance the Development and Construction of a New Judicial Center Complex  Security for the Bonds – Local Government Half-Cent Sales Tax  Underlying Rating O K A L O O S A – S&P: AA – Fitch: A+  Call Feature C O U N T Y , – October 1, 2019 @ 100%  F L O R I D A Bond Insurance & Surety Bond – Assured Guaranty Member FINRA & SIPC © 2014 5 First Southwest Company Financing Plan Sales Tax Revenue Bonds, Series 2014 • 30 Year financing with final maturity October 1, 2044 • 1st Year Capitalized Interest • Level Annual Debt Service Payments • Use of Bond Insurance Surety Policy instead of a cash funded Debt Service Reserve Account O K A L O O S A • Secured by the County’s Half-cent Sales Tax on Parity (equal lien) with the C O U N T Y , County’s Sales Tax Revenue Bonds Series 2009 A & B F L O R I D A Member FINRA & SIPC © 2014 6 First Southwest Company Financing Plan – Estimated Series 2014 Debt Service Estimated Series 2014 Maturity Date Series 2009A Series 2009B (BABs) Aggregate 30 Year Bond Issue 10/1 Debt Service Debt Service* Debt Service Net Debt Service 2015 $ 654,050 $ 902,846 $ 1,556,896 2016 1,557,846 $ 1,441,175 2,999,021 2017 1,559,752 1,441,163 3,000,914 2018 1,555,008 1,440,925 2,995,933 2019 1,558,928 1,445,463 3,004,391 2020 1,556,620 1,444,063 3,000,683 2021 1,557,733 1,445,588 3,003,320 2022 1,558,033 1,445,438 3,003,470 2023 1,557,520 1,444,188 3,001,708 2024 1,555,669 1,441,800 2,997,469 2025 1,556,632 1,442,550 2,999,182 2026 1,555,708 1,443,325 2,999,033 2027 1,557,548 1,443,038 3,000,586 2028 1,557,487 1,441,688 2,999,175 2029 1,559,852 1,444,275 3,004,127 2030 1,555,657 1,445,588 3,001,245 2031 1,558,407 1,440,625 2,999,032 O K A L O O S A 2032 1,559,329 1,444,600 3,003,929 2033 1,558,423 1,442,088 3,000,510 2034 1,555,688 1,443,300 2,998,988 2035 1,556,126 1,443,025 2,999,151 2036 1,558,500 1,442,613 3,001,113 2037 1,558,596 1,444,838 3,003,433 C O U N T Y , 2038 1,556,412 1,444,438 3,000,849 2039 1,556,949 1,441,413 2,998,362 2040 1,440,763 1,440,763 2041 1,442,225 1,442,225 2042 1,445,538 1,445,538 F L O R I D A 2043 1,445,438 1,445,438 2044 1,441,925 1,441,925 Total $ 654,050 $ 38,281,269 $ 41,853,088 $ 80,788,407 - Series 2014 Debt Service Preliminary and Subject to Change - * Net Interest from Federal Subsidy Member FINRA & SIPC © 2014 7 First Southwest Company Estimated Timetable Estimated Timetable August 5th Approval of Preliminary Financing Plan Credit September 2nd Submit Bond Rating Packages Week of September 15th Ratings Presentations October 6th Approval of Bond Documents O K A L O O S A October 15th Lock in Interest Rates October 30th Closing and Transfer of Funds C O U N T Y , F L O R I D A Member FINRA & SIPC © 2014 8 First Southwest Company Interim Financing With permanent financing approximately 90 to 120 days away: The County Staff is recommending interim financing of approximately $5 million in order to handle funding issues prior to the closing of the bonds. Discussions with the County Bank – SunTrust Bank for a 4 month draw down line of credit for $5 million based on above schedule. Preliminary Terms of the Line of Credit: Interest Rate: 1-Month Libor plus 1.30% x 68% (Currently 0.986%*) O K A L O O S A Unused LOC Fee: 0.20% Estimated Cost of Issuance: $25,000 C O U N T Y , Loan Approval / Documents Approved at August 19th meeting. Closing August 21st *Preliminary/Subject to Change as of 7/21/2014 F L O R I D A Member FINRA & SIPC © 2014 9 First Southwest Company Financing Team Financing Team Bond/Disclosure Counsel Nabors, Giblin & Nickerson Financial Advisor FirstSouthwest Bond Underwriters Crews & Associates RBC Capital O K A L O O S A C O U N T Y , F L O R I D A Member FINRA & SIPC © 2014 10 First Southwest Company