Fort Walton Beach Council agenda — 04-23-13--regular — reading text

Pinnacle Public Finance, Inc. ( " Pinnacle ") Issuer: City of Ft. Walton Beach, Florida ( "City ") Issue Type: Privately placed loan Amount Financed: Not to exceed $ 4, 700, 000 Purpose: Proceeds will be used to refinance the City' s outstanding Series 2001 Capital Improvement Revenue. Securitv: The loan will be secured by a covenant to budget and appropriate from legally available non -ad valorem revenues of the City in an amount necessary to pay principal and interest. Term: Eighteen ( 18) years Pacfiet Pg. 105  F11 .2. a Pinnacle Public Finance, Inc. City of Ft. Walton Beach - RFP ft13 -014) April 1, 2013 Page 2 o£ 4 Interest Rate: 2. 30% Interest will be calculated on a 30/ 360 basis. Interest Rate aj Expiration: The above rate is valid for forty-five (45) days. Projected CNE It' s assumed the loan will fund on or about May 3, 2013. o Funding Date: nE Payment Frequency: Interest will be paid semi -annually each January 1 and July 1, commencing January 1, 2014. Principal will be paid annually each July 1, commencing July 1, 2014 Um t Debt Service: Requirements: Please see the attached Preliminary Debt Service Schedule. mw Prepayment Terms: Prior to January 1, 2019, the obligation can be prepaid in full, but not in part, at price of 101% of the remaining principal balance plus accrued interest. Beginning January 1, 2019, the obligation can be prepaid in full, but not in part, ry at a price equal to the remaining principal balance plus accrued interest. Subject w to negotiation. M Documentation: Pinnacle assumes all financing documentation, including legal opinions r addressing validity and tax matters, will be prepared by the City' s Bond Counsel. mN Pinnacle will require standard gross up provisions in the event the loan becomes o. taxable prior to maturity. Additionally, Pinnacle will require default rates in the 4 % -5% range be included in the loan documents. Subject to negotiation. w U Pinnacle reserves the right to negotiate an industry standard Anti -Dilution test a with the City upon award. Subject to negotiation. This proposal is subject to review and acceptance of all documents by Pinnacle and its outside counsel, Chapman and Cutler LLP. Kw n Fees /Closing Costs: None other than those listed herein, however the City will be responsible for any tees or expenses with respect to its ( i) issuing costs, if any, ( ii) City' s legal counsel, if any, and ( iii) title /registration fees. Pinnacle is willing to finance any N of the City' s expenses related to closing the transaction. o Pinnacle proposes the inclusion of up to $ 4, 000 for its outside counsel in the o costs of issuance. Subject to negotiation. N PthsCket Pgs, 106'-  11. 2. a Pinnacle Public Finance, Inc. City of Ft. Walton Beach —l2FP # 13 -014) April 1, 2013 Page 3 of Pinnacle' s Role As Purchaser: Pinnacle will be acting in this transaction solely as purchaser for its own account and not as a fiduciary for the City or in the capacity of broker, dealer, municipal securities underwriter or municipal advisor. Pinnacle has not provided, and will not provide, financial, legal, tax, accounting or other advice to or on behalf of the City with respect to the proposed financing. The City will seek and obtain financial, legal, tax, accounting and other advice ( including as it relates to structure, timing, terms and similar matters) with respect to the financing from its own financial, legal and other advisors ( and not from Pinnacle) to the extent that the City deems necessary or appropriate and desires to obtain such advice. This proposal is subject to final credit approval and documentation. Please feel free to call me at 480- 419- 3634 with any questions or further clarification. Thank you for the opportunity to present this proposal. Sincerely, i Blair Swain H Vice President, Direct Markets fi 0r nucmNOa0` at kI07  11.11. 2.. 11. 2..2.. Pinnacle Public Finance, Inc, City of Ft. Walton Beach - RFP # 13 - 014) April 1, 2013 Page 4 of 4 Preliminary Debt Service Schedules 0Nv Rate 23000% NGGNG N ec 5i414a el aA96 O6585 54488. 09800 Payment Paymrnt Purchazn O4YStending aa a Prico Aalance PmYq Date Amount Interest Principal m00m0 m 5/5/ 3201332013 1 1/ 1/ 2014 68, 24402 68,68, 2440224402 S0,S0, 0000 S4, 531978 98 54,488, 098. 00 NNN EE E 238, 037. 13 51, 613. 13 186, 42400 4, 344, 690. 74 4, 301, 674011 2 7112014 33 1/ 1201512015 49,49, 469,469, 2525 49,49, 4692546925 0.0. 0000 4,4, 344,344, 6907469074 4,4, 301,301, 6740067400 000 4 7/ 12015 244. 97725 49, 46925 19550800 4, 147, 22766 54, 10616600 aEaEEa