HomeMy WebLinkAboutA013 - Sale Details dated June 29, 2017 SALE DETAILS
DATE: June 29, 2017
ISSUER: City of Ames, Iowa
BOND NAME: $11,970,000* G. O. Corporate Purpose& Refunding Bonds, Series 2017A
BOND ATTORNEY: Dorsey& Whitney
Individuals: Bob Josten/Rebecca Donaldson
Sale Date: August 8,2017
Bid Opening: 11:00 AM CT(Sealed, Parity, Fax-via Loan Agreement)
Place: City Hall
Bid Award: 6:00 PM CT
Bonds Dated: September 12, 2017
Closing Date: September 12, 2017
Maturity: June 1, as follows:
Year Amount* Year Amount*
2018 $1,665,000 2024 $630,000
2019 1,650,000 2025 645,000
2020 1,690,000 2026 660,000
2021 1,720,000 2027 675,000
2022 610,000 2028 695,000
2023 620,000 2029 710,000
*Principal
Adjustment: Preliminary;subject to change. The aggregate principal amount of the Bonds,and each
scheduled maturity thereof, are subject to increase or reduction by the City or its
designee after the determination of the successful bidder. The City may increase or
decrease each maturity in increments of$5,000 but the total amount to be issued will
not exceed $12,500,000. Interest rates specified by the successful bidder for each
maturity will not change. Final adjustments shall be in the sole discretion of the City.
The dollar amount of the purchase price proposed by the successful bidder will be
changed if the aggregate principal amount of the Bonds is adjusted as described above.
Any change in the principal amount of any maturity of the Bonds will be made while
maintaining, as closely as possible, the successful bidder's net compensation,
calculated as a percentage of bond principal. The successful bidder may not withdraw
or modify its bid as a result of any post-bid adjustment. Any adjustment shall be
conclusive, and shall be binding upon the successful bidder.
First Interest: June 1, 2018 and semiannually thereafter. Interest will be computed on the basis of a
360-day year of twelve 30-day months and will be rounded pursuant to rules of the
MSRB.
Record Date: Close of business on the 15th day of the month (whether or not a business day)
immediately preceding such payment date.
6/29/2017
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Cusip Numbers: The City will assume no obligation for the assignment or printing of CUSIP numbers
on the Bonds or for the correctness of any numbers printed thereon, but will permit
such numbers to be printed at the expense of the purchaser,if the purchaser waives any
delay in delivery occasioned thereby.
Call Feature: Bonds due after June 1, 2025 will be subject to call for prior redemption on said date
or on any day thereafter upon terms of par plus accrued interest to date of call.
Establishment of
Issue Price: Hold the Price.
Award: The Bonds will be awarded to the bidder offering the lowest true interest rate to be
determined on a true interest cost basis (TIC). The Issuer's computation of the true
interest cost of each bid, in accordance with customary practice, shall be conclusive.
Bid Parameters: Each bidder's proposal must conform to the following limitations:
1. Each annual maturity must bear a single rate of interest from the dated date of
the Bonds to the date of maturity.
2. Rates of interest bid must be in multiples of one-eighth or one-twentieth of one
percent.
3. The initial price to the public for each maturity must be 98%or greater.
Tenn Bond Option: Bidders shall have the option of designating the Bonds as serial bonds or term bonds,
or both. The bid must designate whether each of the principal amounts shown above
represent a serial maturity or a mandatory redemption requirement for a term bond
maturity. In any event, the principal amount scheduled shall be represented by either
serial bond maturities or mandatory redemption requirements, or a combination of
both.
#OS'es to Purchaser: TBD—NTE 20
Minimum Bid: $11,874,240
Good Faith: $119,700 (1%) from the purchaser ONLY
Registrar: Ames City Treasurer
Book Entry Only: This offering will be issued as fully registered Bonds and, when issued, will be
registered in the name of Cede&Co., as nominee of The Depository Trust Company,
New York,New York.
Financial Advisor: PFM Financial Advisors LLC,Des Moines Office
Individual: Susanne Gerlach
Tax Matters: The Bonds will be designated as qualified tax-exempt obligations.
The Bonds will be federal tax-exempt and state taxable.
Schedule of Events: Jul 10: POS to Susanne for review
Jul 11: POS to City and Bond Counsel for Review
Jul 18: POS to City for Council Packets
** See attached Schedule of Events for more details**
Notes: The bonds will be issued subject to a loan agreement.
Bids will be received as follows:
1)sealed bids will be received at the City;
2) facsimile bids will be received at PFM(fax# 515-243-6994); and
3)electronic internet bids will be received via Parity internet bid system.
6/29/2017
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a 0 &M 801 Grand Avenue 515-727-5734
Suite 3300 515-243-6994 fax
Des Moines, IA 50309 www.pfm.com
PROPOSED SCHEDULE OF EVENTS
CITY OF AMES, IOWA
General Obligation Corporate Purpose & Refunding Bonds, Series 2017A
S M T W T F S S M T W T F S S M T W T F S S M T W T F S
1 2' 3 1 1 2f 3 4', 5 1 2
4 5, 6 7 8 9 10 2 3i 4 5I 6 7'' 8 6' 7 8 9j 10 11'', 12 3' 4 5 6 7 8 9
11' 12 13 14 15 16 17 9 10 11 12 13 14 15 13 14 15 16' 17 18' 19 10' 11 12 13 14 15 16
1
18. 19 20' 21 22 23 24 16 17 18 19:20 21 22 20 21 22 23 24 25' 26 17' 18 19', 20 21 22 23
25 26 27 28 29' 30 23 24 25 26 27 28'' 29 27'28 29 30i 31 24' 25 26' 27 28 29 30
30 31 _
Date Task Description Responsible
Party
June Structure Bonds 9 Develop Debt Amortization Schedules & C, FA
Refunding Analysis
• Prepare Sale Details FA
June -July Prepare POS • Prepare Preliminary Official Statement C, FA
• Prepare Moody's Credit Presentation
July 25 Council Meeting • Approve POS & Electronic Bidding C, FA, RA
July 28 Moody's Credit Call • Moody's Credit Presentation C, FA, RA
August 8 11:00am - Bond Sale • Receive Bids (Sealed, Facsimile & Parity Internet C, FA, BC
Bid System)
6:00pm - Council Meeting 0 Presentation of Bids Received &Award
No later than Prepare Written Notice • Disseminate Notice of Redemption to C, BC
August 11 Bondholders of Refunded Bonds
August 22 Council Meeting • Authorize Issuance Proceedings C, FA, BC
September 12 Closing • Purchaser Delivers Funds C, BC, FA
September 12 Redeem Refunded Bonds • Redeem Refunded Bonds C
No later than Post Material Event Notice • Post Bond Call Material Event Notice to EMMA FA
September 26 within 10 business days of redemption
Financing Team Members:
C=City of Ames, Iowa
BC= Dorsey and Whitney(bond counsel)
FA= PFM Financial Advisors LLC(financial advisor)
RA= Moody's Investors Service (rating agency)
SOURCES AND USES OF FUNDS
City of Ames,Iowa
Proposed General Obligation Corporate Purpose and Refunding Bonds,Series 2017A
Proposed
2017A- Current
Portion Paid Refunding of
Sources: by Taxes Series 2009B Total
Bond Proceeds:
Par Amount 7,625,000.00 4,345,000.00 11,970,000.00
7,625,000.00 4,345,000.00 11,970,000.00
Proposed
2017A- Current
Portion Paid Refunding of
Uses: by Taxes Series 2009B Total
Project Fund Deposits:
Project Fund 7,521,000.00 7,521,000.00
Refunding Escrow Deposits:
Cash Deposit 4,285,000.00 4,285,000.00
Delivery Date Expenses:
Cost of Issuance 40,322.69 22,977.31 63,300.00
Underwriter's Discount 61,000.00 34,760.00 95,760.00
101,322.69 57,737.31 159,060.00
Other Uses of Funds:
Additional Proceeds 2,677.31 2,262.69 4,940.00
7,625,000.00 4,345,000.00 11,970,000.00
Note: MMD as of 06-27-2017+16 bps-Waterloo 05-17-2017(Aa2/BQ)+50 bps timing
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 1
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BOND SUMMARY STATISTICS
City of Ames,Iowa
Proposed General Obligation Corporate Purpose and Refunding Bonds,Series 2017A
Dated Date 09/12/2017
Delivery Date 09/12/2017
Last Maturity 06/01/2029
Arbitrage Yield 2.240011%
True Interest Cost(TIC) 2.417644%
Net Interest Cost(N1C) 2.417814%
All-In TIC 2.536366%
Average Coupon 2.254923%
Average Life(years) 4.908
Duration of Issue(years) 4.565
Par Amount 11,970,000.00
Bond Proceeds 11,970,000.00
Total Interest 1,324,747.93
Net Interest 1,420,507.93
Total Debt Service 13,294,747.93
Maximum Annual Debt Service 1,874,876.50
Average Annual Debt Service 1,134,417.93
Underwriter's Fees(per$1000)
Average Takedown
Other Fee 8.000000
Total Underwriter's Discount 8.000000
Bid Price 99.200000
Par Average Average PV of I by
Bond Component Value Price Coupon Life change
Bond Component 11,970,000.00 100.000 2.255% 4.908 5,338.15
11,970,000.00 4.908 5,338.15
All-In Arbitrage
TIC TIC Yield
Par Value 11,970,000.00 11,970,000.00 11,970,000.00
+Accrued Interest
+Premium(Discount)
Underwriter's Discount (95,760.00) (95,760.00)
-Cost of Issuance Expense (63,300.00)
Other Amounts
Target Value 11,874,240.00 11,810,940.00 11,970,000.00
Target Date 09/12/2017 09/12/2017 09/12/2017
Yield 2.417644% 2.536366% 2.240011%
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 2
BOND PRICING
City of Ames,Iowa
Proposed General Obligation Corporate Purpose and Refunding Bonds,Series 2017A
Maturity
Bond Component Date Amount Rate Yield Price
Bond Component:
06/01/2018 1,665,000 1.510% 1.510% 100.000
06/01/2019 1,650,000 1.640% 1.640% 100.000
06/01/2020 1,690,000 1.720% 1.720% 100.000
06/01/2021 1,720,000 1.810% 1.810% 100.000
06/01/2022 610,000 1.920% 1.920% 100.000
06/01/2023 620,000 2.040% 2.040% 100.000
06/01/2024 630,000 2.140% 2.140% 100.000
06/01/2025 645,000 2.280% 2.280% 100.000
06/01/2026 660,000 2.430% 2.430% IWOO()
06/01/2027 675,000 2.540% 2.540% 100.000
06/01/2028 695,000 2.650% 2.650% 100.000
06/01/2029 710,000 2.760% 2.760% 100.000
11,970,000
Dated Date 09/12/2017
Delivery Date 09/12/2017
First Coupon 06/01/2018
Par Amount 11,970,000.00
Original Issue Discount
Production 11,970,000.00 100.000000%
Underwriter's Discount (95,760.00) (0.800000%)
Purchase Price 11,874,240.00 99.200000%
Accrued Interest
Net Proceeds 11,874,240.00
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 3
SUMMARY OF REFUNDING RESULTS
City of Ames,Iowa
Proposed Current Refunding of Series 2009B
Dated Date 09/12/2017
Delivery Date 09/12/2017
Arbitrage yield 2.240011%
Escrow yield 0.000000%
Value of Negative Arbitrage
Bond Par Amount 4,345,000.00
True Interest Cost 2.092747%
Net Interest Cost 2.082518%
Average Coupon 1.727316%
Average Life 2.252
Par amount of refunded bonds 4,285,000.00
Average coupon of refunded bonds 3.369334%
Average life of refunded bonds 2.264
PV of prior debt to 09/12/2017 @ 2.240011% 4,390,344.19
Net PV Savings 96,192.13
Percentage savings of refunded bonds 2.244857%
Percentage savings of refunding bonds 2.213858%
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 anies:2017A) Page 4
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SAVINGS
City of Ames,Iowa
Proposed General Obligation Corporate Purpose and Refunding Bonds,Series 2017A
Present Value
Prior Refunding Annual to 09/12/2017
Date Debt Service Debt Service Savings Savings a 2.2400107%
09/12/2017 (39,179.58) (39,179.58) (39,179.58)
12/01/2017 69,825.00 69,825.00 69,484.51
06/01/2018 1,084,825.00 1,092,305.41 (7,480.41) 23,165.01 (7,361.48)
12/01/2018 54,600.00 28,499.25 26,100.75 25,401.30
06/01/2019 1,104,600.00 1,103,499.25 1,100.75 27,201.50 1,059.39
12/01/2019 38,850.00 19,684.25 19,165.75 18,241.25
06/01/2020 1,128,850.00 1,124,684.25 4,165.75 23,331.50 3,920.89
12/01/2020 19,775.00 10,181.25 9,593.75 8,929.83
06/01/2021 1,149,775.00 1,135,181.25 14,593.75 24,187.50 13,433.35
4,611,920.42 4,514,034.91 97,885.51 97,885.51 93,929.44
Savings Summary
PV of savings from cash flow 93,929.44
Plus:Refunding funds on hand 2,262.69
Net PV Savings 96,192.13
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 5
BOND DEBT SERVICE
City of Ames,Iowa
Proposed General Obligation Corporate Purpose and Refunding Bonds,Series 2017A
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2018 1,665,000 1.510% 169,893.93 1,834,893.93 1,834,893.93
12/01/2018 105,502.25 105,502.25
06/01/2019 1,650,000 1.640% 105,502.25 1,755,502.25 1,861,004.50
12/01/2019 91,972.25 91,972.25
06/01/2020 1,690,000 1.720% 91,972.25 1,781,972.25 1,873,944.50
12/01/2020 77,438.25 77,438.25
06/01/2021 1,720,000 1.810% 77,438.25 1,797,438.25 1,874,876.50
12/01/2021 61,872.25 61,872.25
06/01/2022 610,000 1.920% 61,872.25 671,872.25 733,744.50
12/01/2022 56,016.25 56,016.25
06/01/2023 620,000 2.040% 56,016.25 676,016.25 732,032.50
12/01/2023 49,692.25 49,692.25
06/01/2024 630,000 2.140% 49,692.25 679,692.25 729,384.50
12/01/2024 42,951.25 42,951.25
06/01/2025 645,000 2.280% 42,951.25 687,951.25 730,902.50
12/01/2025 35,598.25 35,598.25
06/01/2026 660,000 2.430% 35,598.25 695,598.25 731,196.50
12/01/2026 27,579.25 27,579.25
06/01/2027 675,000 2.540% 27,579.25 702,579.25 730,158.50
12/01/2027 19,006.75 19,006.75
06/01/2028 695,000 2.650% 19,006.75 714,006.75 733,013.50
12/01/2028 9,798.00 9,798.00
06/01/2029 710,000 2.760% 9,798.00 719,798.00 729,596.00
11,970,000 1,324,747.93 13,294,747.93 13,294,747.93
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 6
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BOND DEBT SERVICE
City of Ames,Iowa
2017A-Portion Paid by Taxes
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2018 625,000 1.510% 117,588.52 742,588.52 742,588.52
12/01/2018 77,003.00 77,003.00
06/01/2019 575,000 1.640% 77,003.00 652,003.00 729,006.00
12/01/2019 72,288.00 72,288.00
06/01/2020 585,000 1.720% 72,288.00 657,288.00 729,576.00
12/01/2020 67,257.00 67,257.00
06/01/2021 595,000 1.810% 67,257.00 662,257.00 729,514.00
12/01/2021 61,872.25 61,872.25
06/01/2022 610,000 1.920% 61,872.25 671,872.25 733,744.50
12/01/2022 56,016.25 56,016.25
06/01/2023 620,000 2.040% 56,016.25 676,016.25 732,032.50
12/01/2023 49,692.25 49,692.25
06/01/2024 630,000 2.140% 49,692.25 679,692.25 729,384.50
12/01/2024 42,951.25 42,951.25
06/01/2025 645,000 2.280% 42,951.25 687,951.25 730,902.50
12/01/2025 35,598.25 35,598.25
06/01/2026 660,000 2.430% 35,598.25 695,598.25 731,196.50
12/01/2026 27,579.25 27,579.25
06/01/2027 675,000 2.540% 27,579.25 702,579.25 730,158.50
12/01/2027 19,006.75 19,006.75
06/01/2028 695,000 2.650% 19,006.75 714,006.75 733,013.50
12/01/2028 9,798.00 9,798.00
06/01/2029 710,000 2.760% 9,798.00 719,798.00 729,596.00
7,625,000 1,155,713.02 8,780,713.02 8,780,713.02
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 7
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BOND DEBT SERVICE
City of Ames,Iowa
Proposed Current Refunding of Series 2009B
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2018 1,040,000 1.510% 52,305.41 1,092,305.41 1,092,305.41
12/01/2018 28,499.25 28,499.25
06/01/2019 1,075,000 1.640% 28,499.25 1,103,499.25 1,131,998.50
12/01/2019 19,684.25 19,684.25
06/01/2020 1,105,000 1.720% 19,684.25 1,124,684.25 1,144,368.50
12/01/2020 10,181.25 10,181.25
06/01/2021 1,125,000 1.810% 10,181.25 1,135,181.25 1,145,362.50
4,345,000 169,034.91 4,514,034.91 4,514,034.91
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 8
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PRIOR BOND DEBT SERVICE
City of Ames,Iowa
Proposed General Obligation Corporate Purpose and Refunding Bonds,Series 2017A
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
09/12/2017 (39,179.58) (39,179.58)
12/01/2017 69,825.00 69,825.00
06/01/2018 1,015,000 3.000% 69,825.00 1,084,825.00 1,115,470.42
12/01/2018 54,600.00 54,600.00
06/01/2019 1,050,000 3.000% 54,600.00 1,104,600.00 1,159,200.00
12/01/2019 38,850.00 38,850.00
06/01/2020 1,090,000 3.500% 38,850.00 1,128,850.00 1,167,700.00
12/01/2020 19,775.00 19,775.00
O6/01/2021 1,130,000 3.500% 19,775.00 1,149,775.00 1,169,550.00
4,285,000 326,920.42 4,611,920.42 4,611,920.42
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 9
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SUMMARY OF BONDS REFUNDED
City of Ames,Iowa
Proposed General Obligation Corporate Purpose and Refunding Bonds,Series 2017A
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
General Obligation Series 2009B,200913:
SER 06/01/2018 3.000% 1,015,000.00 09/12/2017 100.000
06/01/2019 3.000% 1,050,000.00 09/12/2017 100.000
06/01/2020 3.500% 1,090,000.00 09/12/2017 100.000
06/01/2021 3.500% 1,130,000.00 09/12/2017 100.000
4,285,000.00
Jun 28,2017 5:42 pm Prepared by PFM Financial Advisors LLC (Finance 7.017 ames:2017A) Page 10