The URL can be used to link to this page

Home My WebLink AboutA009 - Postsale AnalysisPOSTSALE ANALYSIS $5,460,000 GENERAL OBLIGATION CORPORATE PURPOSEBONDS, SERIES 1997A CITY OF AMES, IOWA SALE DATE: JUNE 10, 1997 EVENSEN DODGE INC F I N A N C I A L C C) N 5 U L T A N T 5 EVENSEN DODGE INC September 8, 1997 Ms. Alice Carroll Director of Finance City of Ames 515 Clark Avenue, City Hall Ames, IA 50010 RE: $5,460,000 General Obligation Corporate Purpose Bonds, Series 1997A Dear Ms. Carroll: We are pleased to present this Postsale Analysis of the City's sale of the Bonds referenced above on June 10, 1997. This Postsale Analysis summarizes and confirms information provided to the City on the day of the sale prior to the award of the Bonds. Please do not hesitate to contact us, at any time throughout the life of this issue, with any questions which may arise on the transaction. We appreciate the opportunity to have worked with the City on this financing, and we value our continuing relationship with the City. Sincerely, EVENSEN DODGE, INC. ,�� aalr�el !/Z David M. Dirks Senior Vice President Im 001 Second Avenue South, SUk' 5100, Minneapohl , MN 5' -102 () 12 /'j 5 £i-I) 1, 91) 800/32B 8?00 FAX 012/3M 7204 TABLE OF CONTENTS Section Page I Issue Summary I 2 List of Participants . 2 3 Proceeds Received at Closing 4 Sources and Uses of Funds 4 5 Debt Service Schedule 5 6 Results of Sale 7 Comparative Sales in Market 8 Purchaser's Compensation _ 10 9 Continuing Disclosure 13 11 The Bond Buyer's Index Graph 14 12 Official Statement Cover 16 0371124 SECTION I ISSUE SUMMARY Name of Issue: $5,460,000 General Obligation Corporate Purpose Bonds, Series 1997A. Date of Sale: Tuesday, June 10, 1997 Date of Closing: June 24, 1997 Purpose of Issue: The proceeds of the Bonds will be used to finance the costs of reconstruction, rehabilitation, and improvements to streets and storm sewers in the City. Dated Date: June 1, 1997 Principal Due: June 1, 1998/2009 Call Features: The Bonds maturing on June 1, 2006 and thereafter are subject to prior redemption on June 1, 2005 and on any date thereafter at a price of par plus accrued interest. Credit Ratings: Aaa: Moody's Investors Service AA: Standard & Poor's Net Interest Rate: 4.7495% Qualified Tax -Exempt Obligation: Bank -Qualified. SM EVENSEN DODGE INC Page 1 0371124 .' SECTION LIST OF PARTICIPANTS Issuer Purchaser City of Ames Harris Trust & Savings Bank 515 Clark Avenue I I I West Monroe Street City Hall 22°d Floor West Ames, IA 50010 Chicago, IL 60603 Ms. Alice Carroll Director of Finance Financial Advisor Depositor Evensen Dodge, Inc. The Depository Trust Company 100 Court Avenue Suite 215 55 Water Street New York, NY 10041 Des Moines, IA 50309 ' Mr. David M. Dirks Senior Vice President 515/282-6138 51.5/282-0252 FAX rBond Counsel Dorsey & Whitney LLP 801. Grand Suite 3900 Des Moines, IA 50309 Robert 14. Helmick, Esq. EVENSEN DODGE INC Page 2 0371124 SECTION 3 PROCEEDS RECEIVED AT CLOSING Amount Principal Amount of Issue $5,460,000.00 Less: Discount on Bid) (54,555.15) Purchase Price 5,405,444.85 Less: Good Faith Deposit") (54,600.00) Plus: Accrued Interest 15.954.01 Net Received at Closing $5,366,798.86 Difference between par amount of the Bonds and their purchase price. The discount is the primary source of the underwriter's compensation. Deposited with the City by the purchaser following the sale and applied toward the purchase price. EVENSEN DODGE INC Page 3 0-371124 Sources of Funds Bonds Principal Amount of Issue $5,460,000.00 Accrued Interest 15,954.01 Total Sources $5,475,954.01 Uses of Funds Project Costs $5,360,444.85 Estimated Costs of Issuance 45,000.00 Underwriter's Discount 54,555.15 Debt Service Fund 15.954.01 Total $5,475,954.01 ft EVENSEN DODGE INC Page 4 0371124 SECTION 5 DEBT SERVICE SCHEDULE The following schedule shows the semiannual interest and annual principal payments for the Bonds based upon the interest rates specified by the winning bid. am= M EVENSEN DODGE INC Page 5 0.171124 City of Ames, Iowa $5,460,000 G.O. Corporate Purpose Bonds, Series 1997A Final Based on Harris Trust Debt Service Schedule Date Principal Coupon Interest Period Total Fiscal Total 12/ .............. 1/97 .......... ................4i 124,857.50 .............. 124,857,50 6/ 1/98 485,000.00 4.400000 124,857.50 609,857.50 734,715.00 12/ 1/98 114,187.50 114,187.50 6/ 1/99 475,000.00 4.500000 114,187.50 589,187.50 703,375.00 12/ 1/99 103,500.00 103,500.00 6/ 1/ 0 450,000.00 4.600000 103,500.00 553,500.00 657,000.00 12/ 1/ 0 93,150.00 93,150.00 6/ 12/ 1/ 1 1/ 1 450,000.00 4.600000 93,150.00 82,800.00 543,150.00 82,800.00 636,300.00 6/ 1/ 2 450,000.00 4.600000 82,800.00 532,800.00 615,600.00 12/ 1/ 2 72,450.00 72,450.00 6/ 1/ 3 450,000.00 4.600000 72,450.00 522,450.00 594,900.00 12/ 1/ 3 62,100.00 62,100.00 6/ 1/ 4 450,000.00 4.600000 62,100.00 512,100.00 574,200.00 12/ 1/ 4 51,750.00 51,750.00 6/ 12/ 1/ 5 1/ 5 450,000.00 4.600000 51,750.00 41,400.00 501,750.00 41,400.00 553,500.00 6/ 1/ 6 450,000.00 4.600000 41,400.00 491,400.00 532,800.00 12/ 1/ 6 31,050.00 31,050.00 6/ 1/ 7 450,000.00 4.600000 31,050.00 481,050.00 512,100.00 12/ 1/ 7 20,700.00 20,700.00 6/ 1/ 8 450,000.00 4.600000 20,700.00 470,700.00 491,400.00 12/ 1/ 8 10,350.00 10,350.00 6/ 1/ 9 4- 450`000.00 5,460,000.00 4.600000 " __�10,350.00 1,616,590.00 r��r460,350`00 7,076,590.00 470,700.00 ACCRUED 15,954.01 15,954.01 5,460,000.00 1,600,635.99 7,060,635.99 �xxxasxaaxxax xxaxaxxaaaxxxa xxxxxaxaxaxaax Dated 6/ 1/97 with Delivery of 6/24/97 Bond Years 35,185.000 Average Coupon 4.594543 Average Life 6.444139 N I C % 4.749595 % Using 99.0008214 T I C % 4.784225 % From Delivery Date Micro -Muni Debt Date: 06-10-1997 @ 14:41:50 Fitename: AMES Key: 97GO EVENSEN DODGE INC 0371124 Page 6 SECTION 6 RE:sULTS OF SALE: Is EVENSEN DODGE INC Page 7 0371124 RESULTS OF SALE SALE DATE: DUNE 10, 1997 S5,460,000 General Obligation Corporate Purpose Bonds, Series 1997A City of Ames, Iowa Due: June 1, 1998/2009 Dated: June 1, 1997 Rating: Aaa (Moody's) Bank Qualified: Yes BBI: 5.60% AA(S&P) BIDDERS Address Year Rate Yield HARRIS TRUST & SAVINGS BANK Chicago 1998 4.40% 33 .90% Price NORWEST INVESTMENT Minneapolis 1999 4,50% 4.20% SERVICES Josephthal, Lyon & Ross, Inc. New York 2000 4.60% 4,30% $5,405,444.85 Northern Trust Securities, Inc. Chicago 2001 4.60% 4.40% Ruan Securities Corporation Des Moines 2002 4.600//o 4.45% NIC Wachovia Bank of North Carolina Winston-Salem 2003 4.60% 4.55% A. H. Williams & Co., Inc. New York 2004 4.60% 4.650,/o $1,671,145.15 2005 4.60% 4.70% 2006 4.60% 4.75% NIR 2007 4,60% 4,80% 2008 4.60% 4.90% 4.7495% 2009 4.600//o 5.00% SMITH BARNEY, INC. Omaha 1998 3.80% Price 1999 4.00% 2000 4.20% $5,405,400.00 2001 4.35% 2002 4A0% NIC 2003 4.50% 2004 4.60% 1,673,655.00 2005 4.60% 2006 4.65% NIR 2007 4.70% 2008 4.80% 4.7567% 2009 4.80% PIPER JAFFRAY, INC. Minneapolis 1998 4.50% Price 1999 4.50% 2000 4.50% $5,406,037.30 2001 4.50% 2002 4.60% NIC 2003 4.60% 2004 4.60% $1,687,912.70 2005 4.60% 2006 4.60% NIR 2007 4.70% 2008 4.75% 4.7972% 2009 4,75% NEVENSEN DODGE INC Page 8 0371124 BIDDERS Address Year Rate UMB BANK, N.A. Kansas City 1998 4.00% Price 1999 4.25% 2000 4.40% $5,429,970.00 2001 4.50% 2002 4.551),/o NIC 2003 4.60% 2004 4.6 5)/o $1,683,830.00 2005 4.65% 2006 4,75% NIR 2007 4.85% 2008 4.90% 4,8140% 2009 5.00% NIKE SECURITIES, L.P. Lisle, IL 1998 4.25% Price 1999 4.40% 2000 4.50% $5,405,901.30 2001 4.60% 2002 4.70% NIC 2003 4.70% 2004 4.70% $1,698,261,20 2005 4,70% 2006 4,70% NIR 2007 4.70% 2008 4.70% 4.8266% 2009 4.70% SN'EVENSEN DODGE INC Flage 9 0371124 • The following table presents a comparison of the reoffering yields for similar issues to assess how the City's issues performed in the marketplace. The tables compares the City's sale to an Aa2 (Moody's) rated general obligation issue of the City of St. Paul, Minnesota and an unrated general obligation issue of Cambridge, Minnesota, The City received comparable rates to these issues in the marketplace. City of St. Paul, MN Cambridge, YIN Issuer: Ames, IA Amount: $5,460,000 $7,000,000 $1,835,000 Issue: G.O. Bonds G.O. Bonds G.O. Bonds Sale Date: 06/10/97 06/11/97 6/16/97 Rating: Aaa: Moody's Aa2: Moody's Not Rated AA: S & P Qualified Yes No Yes Year Yield Yield Yield 1997 1998 3.90% 3.75% 1999 4.20% 4.10% 4.50% 2000 4.30% 4.30% 4.60% 2001 4.40% 4.40% 4.75% 2002 4.45% 4.50% 4.90% 2003 4.55% 4.60% 5.00% 2004 4.65% 4.70% 5. 10% 2005 4.70% 4.75% 5.20% 2006 4.75% 4.80% 5.25% 2007 4.80% 4.85% 5.30% 2008 4.90% 4.95% 5.40% 2009 5.00% 5.05% (1) Qualified Tax -Exempt Obligation S-EVENSEN DODGE INC Page 10 03? 1124 SECTION 8 0 The following schedule computes the compensation generated by the purchaser on the issue. The compensation was achieved through a combination of the discount bid oil the Bonds and the difference between the rates bid on the Bonds and the yields at which the Bonds were reoffered. The compensation totaled $26,680.60 or .489% of par for the Bonds. This is a reasonable level of compensation for an issue of this size and maturity length under current market conditions. N EVENSEN DODGE INC Page 11 0371124 City of Ames, Iowa $5,460,000 G.O. Corporate Purpose Bonds, Series 1997A Final Based on Harris Trust Bond Production Report Dated 6/ 1/1997 Delivery 6/24/1997 Date Principal Bond Type B/Y Coupon Yield $Price -------- -------------- ......... ........ ....... ....... ........ 6/ 1/98 485,000.00 Standard 485 4.4000 3.9000 100.452 6/ 1/99 475,000.00 Standard 1435 4.5000 4.2000 100.549 6/ 1/ 0 450,000.00 Standard 2785 4.6000 4.3000 100.816 6/ 1/ 1 450,000.00 Standard 4585 4.6000 4.4000 100.712 6/ 1/ 2 450,000.00 Standard 6835 4.6000 4.4500 100.655 6/ 1/ 3 450,000.00 Standard 9535 4.6000 4.5500 100.254 6/ 1/ 4 450,000.00 Standard 12685 4.6000 4.6500 99.703 6/ 1/ 5 450,000.00 Standard 16285 4.6000 4.7000 99.340 6/ 1/ 6 450,000.00 Standard 20335 4.6000 4.7500 98.915 6/ 1/ 7 450,000.00 Standard 24835 4.6000 4.8000 98.431 6/ 1/ 8 450,000.00 Standard 29785 4.6000 4.9000 97.480 6/ 1/ 9 450,000.00 Standard 35185 4.6000 5.0000 96.433 ---- Par Amount 5,460,000.00 Production -27,874.55 Gross Production 5,432,125.45 99.4894771 Bond Insurance 0.00 0.0000000 Underwriters Discount 26,680.60 0.4886557 Bid 5,405,444.85 99.0008214 Accrued 15,954.01 Net to Issuer 5,421,398.86 Gross Interest Cost 1,616,590.00 +Net Discount 54,555.15 Net Interest Cost 1,671,145.15 N I C % 4.7495954 Using 99-0008214 T I C % 4.7842254 From Delivery Date Bond Years 35,185.000 Average Coupon 4.594543 Average Life 6.444139 Micro -Muni Debt Date: 06-10-1997 @ 14:41:44 NEVENSEN DODGE INC Gross Priced to Call Production ................ .............. 487,192.20 477,607.75 453,672.00 453,204.00 452,947.50 451,143.00 448,663.50 447,030.00 "5,117.50 "2,939.50 Filename: AMES Key: 97GO 438,660.00 433,948.50 -------------- 5,432,125.45 Page 12 0371124 SECTION 9 CONTINUING DISCLOSURE + The Securities Exchange Commission issued rule 15(c)2-12 in 1990 which states that tinder -writers cannot bid on issues of $1,000,000 or more unless they have first reviewed an official statement which has been designated by the issuing municipality as a "near final official statement." Though the rule places an obligation on the underwriter, it is generally understood that the ultimate responsibility for the quality of disclosure provided in an official statement rests with the issuer. Evensen Dodge assisted the City with the preparation and dissemination of a "nearly final official statement" to the underwriting community prior to the issuance of the Notes and a final addendum which was distributed to the purchaser after the sale. Since July of 1995, issuers have been required to covenant to provide continuing disclosure on their notes as long as the notes are outstanding, 'The continuing disclosure consists of a filing of an annual information statement and "timely" filing of the occurrence of certain material events. The filings must be made to all nationally recognized Municipal Securities Information Repositories ("NRMSIR's") and the State Repository, if any. The annual information consists of an audited financial report and annually updated information similar to the financial information provided with the official statement for the Notes. Material events consist of I I specific events which must be disclosed if they occur. Prior to the closing of the Bonds, the City executed a Continuing Disclosure Certificate which set forth the covenant by the City to provide continuing disclosure and which specifies the type of information that will be updated annually. --I I L I ri C INEVENSEN DODGE INC Page 13 1 0371124 qiiiii i I s •' ; •• - EVENSEN DODGE INC Page 14 0371124 cT cT Cr CT cT CT cT cr cc 00 cry 00 00 cr 00 00 C� kn 00 cT 'IT coo 00 Cr rq 00 CS gz jua3lad SECTION 1 1 NEVENSEN DODGE INC Page 16 0371124 E 0 P G F El f] u 0 u J I J ADDENDUM DATED -DUNE 12,1997 TO OFFICIAL STATEMENT DATED MAY 30,1997 Rating: Aaa: Moody's Investors Service, Inc. AA: Standard & Poor's In the olnnion oBond Counsel, under existing law, interest to he paid to the holders ql'the Bonds is not includable in knross income lbr lederal inc on'le tax Ino-I)oses, subject to certain matters described under ''Tax Exemption " herein. OFFICIAL STATEMENT (NEW ISSUE) $5,460,000 General Obligation Corporate Purpose Bonds, Series 1997A City of Ames, Iowa Dated: June 1, 1997 Principal ue: June 1, 1998/2009 The $5,460,000 General Obligation Corporate Purpose Bonds, Series 1997A (the "Bonds") of the City of Alines, Iowa (the "City" or "Issuer") are issued pursuant of Chapter 384 of the Code of Iowa for the purpose of paying costs of reconstruction, rehabilitation and improvements to streets and storm sewers in the City. The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name Cede & Co., as nominee of The Depository Trust Company ("D'I'C"). DTC will act as securities depository of the Bonds, Individual purchases may be made in book -entry form only, in the principal arnount of $5,000 and integral Multiples thereof'. Purchasers will not receive certificates representing their interest in the Bonds purchased. Principal and interest on the Bonds, payable initially on December 1, 1997, and thereafter semiannually on each June I and December 1, will be paid to DTC, which will in turn remit such principal and interest to its participants for subsequent disbursement to the beneficial owners of the Bonds as described herein. The Bonds will mature June I in the years and amounts as follows: Interest Interest Year Amount Rate Yield CUSIP Year Amount Rate Yield CUSIP 1998 $485,000 4.40'No 3.90% 030807 TM 3 2004 $450,000 4.60% 4,65% 030807 TT, 8 1999 475,000 4.50% 4.20% 0308071-N 1 2005 450,000 4.60% 4,70% 030807TU 5 2000 450,000 4.60% 430% 030807 TP 6 2006 450,000 4,60% 4,75% 030807 'TV 3 2001 450,000 4.60% 4.40% 030807TQ 4 2007 450,000 4.60% 4.809/o 030807TW 1 2002 450,000 4.60% 445% 030807 TR 2 2008 450,000 4.60% 4.90% 030807 TX 9 2003 450,000 4.600//o 4.55% 030807 TS 0 2009 450,000 4.60% 5.00% 030807TY 7 The Bonds maturing on June 1, 2006 and thereafter are subject to prior redemption on June 1, 2005 and any date thereafter at a price of par plus accrued interest. BANK QUALIFIED: The Bonds are "QualifiedTax-Exempt Obligations". LEGAL OPINION: Dorsey & Whitney LLP, Des Moines, Iowa REGISTRAR/PAYING AGENT: The City of Ames, Iowa An account group managed by Harris Trust & Savings Bank has agreed to purchase the Bonds from the City of Ames for an aggregate price of $5,405,444.85. A list of the account members are listed on the reverse side of this addendum. The Bonds will be available for delivery on June 24, 1997. THIS ADDENDUM IS INCORPORATED BY REFERENCE AS OFTHE DATE HEREOF INTO) THE OFFICIAL, STATEMENT OF THE CITY DATED MAY 30, 1997, WITH RESPECT TO THE BONDS. 'TAKEN IN CONJUNCTION WITH SAID OFFICIAL, STATE ' MENT, TI Its ADDENDtJM SHALL CONSTITUTE A "FINAL OFFICIAL STATEMEN'T OFTHE CITY WITI I RESPECT TO> ,THE BONDS ASTHATTERM IS DF.'FINED IN RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION. NORWEST INVESTMENT SERVICES, INC. Josephthal, Lyon & Ross, Inc., Northern Trust Securities, Inc. Ruan Securities Corporation, Wachovia Bank of North Carolina A. H. Williams & Co., Inc.