HomeMy WebLinkAboutA011 - Sale Details dated June 18, 2019 SALE DETAILS
DATE: June 18,2019
ISSUER: City of Ames,Iowa
BOND NAME: $11,555,000* General Obligation Corporate Purpose Bonds, Series 2019A
BOND ATTORNEY: Dorsey& Whitney
Individuals: Bob Josten
Sale Date: August 27,2019
Bid Opening: 11:00 AM CT(Sealed.Parity,Fax-via Loan Agreement)
Place: City Hall
Bid Award: 6:00 PM CT
Bonds Dated: September 12,2019
Closing Date: Sentember 12,2019
Maturity: June 1,as follows:
Year Amount* Year Amount*
2020 $965,000 2026 $1,010,000
2021 920,000 2027 920,000
2022 935,000 2028 940,000
2023 955,000 2029 960,000
2024 970,000 2030 980,000
2025 995,000 2031 1,005,000
*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 $11,880,000. 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 1,2020 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.
6/18/2019
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, 2027 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.
Term 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 25
Minimum Bid: $11,451,005
Good Faith: $115,500(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 NOT be designated as qualified tax-exempt obligations.
The Bonds will be federal tax-exempt and state taxable.
Schedule of Events: Jul 25: POS to Susanne for review
Jul 30: POS to City and Bond Counsel for Review
Aug 6: 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 rec'd at the City&PFM via Parity intemet bid system.
6/18/2019
0 p f m 801 Gmnd Avenue 515-727-5734
Suite 3300 615-243-6994 fax
Des Moines,IA 50309 w .pfm.com
PROPOSED SCHEDULE OF EVENTS
CITY OF AMES, IOWA
General Obligation Corporate Purpose Bonds, Series 2019A
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 1 2 3 1 2 3 4 5 6 7
7 8. 9 17 11 4 13 4 5. 6 7 8 9 13 8. 9 10 11. 4. 13. 14
14 15 16 17 18 19 20 11 12 13 14 15 T 17 15 13 17 15 re 20 21
21 22 23 24 25 26 27 13 "B 20 21 22 23 24 22 23 24 2526 27 28
28 29 30 31 25 26 27 28 29 30 31 29 30
I
Date Task - Responsible
Party
July Structure Bonds • Develop Debt Amortization Schedules C, FA
• Prepare Sale Details FA
July Prepare POS • Prepare Preliminary Official Statement C, FA
• Prepare Moody's Credit Presentation
July 30 Draft POS Sent for Review a PFM distributes the first draft of the POS for FA,C,BC
review by the City and Bond Counsel.
Aug 6 POS Sent to City for • PFM sends POS for inclusion in the City Council FA,C,BC
Council Packets agenda packets for the Aug 14"'meeting.
Wk of Aug 12 Moody's Credit Call • Moody's Credit Presentation (Date/Time TBD) C,FA, RA
Aug 13 Council Meeting . Approve POS& Electronic Bidding C, FA, RA
August 27 11:00am - Bond Sale • Receive Bids(Sealed, Facsimile& Parity Internet C, FA,BC
Bid System)
6:00pm- Council Meeting . Presentation of Bids Received &Award
• Authorize Issuance Proceedings
September 12 Closing • Purchaser Delivers Funds C, BC, FA
nancing Team Mem
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)
ow-
SOURCES AND USES OF FUNDS
City of Ames,Iowa
General Obligation Corporate Purpose Bonds,Series 2019A
Portion Paid Portion Paid Portion Paid
Sources: by Taxes by TIF by Utilities Total
Bond Proceeds:
Par Amount 10,955,000.00 320,000.00 280,000.00 11,555,000.00
10,955,000.00 320,000.00 280,000.00 11,555,000.00
Portion Paid Portion Paid Portion Paid
Uses: by Taxes by TIF by Utilities Total
Project Fund Deposits:
Project Fund 10,790,000.00 314,204.00 280,000.00 11,384,204.00
Delivery Daze Expenses:
Cost of Issuance 62,857.34 1,836.09 1,606.57 66,300.00
Underwriter's Discount 98,595.00 2,880.00 2,520.00 103,995.00
161,452.34 4,716.09 4,126.57 170,295.00
Other Uses of Fonds:
Additional Proceeds 3,547.66 1.079.91 (4,126.57) 501.00
10,955,000.00 320,000.00 280,000.00 11,555,000.00
Note: MMD as of 06-17-2019+Non-BQ/Aal pricing+40 bps timing
Jun 18,2019 11:13 am Prepared by PFM Financial Advisors LLC Page I
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BOND SUMMARY STATISTICS
City of Ames,Iowa
General Obligation Corporate Purpose Bonds,Series 20I9A
Dated Date 09/12/2019
Delivery Date 09/12/2019
Last Maturity 06/01/2031
Arbitrage Yield 2.194024%
True Interest Cost(TIC) 2.352044%
Net Interest Cost(NIC) 2.348041%
All-In TIC 2.453868%
Average Coupon 2.2042790%
Average Life(years) 6.260
Duration of Issue(years) 5.777
Par Amount 11,555,000.00
Bond Proceeds 11,555,000.00
Total Interest 1,594,535.39
Net Interest 1,698,530.39
Total Debt Service 13,149,535.39
Maximum Annual Debt Service 1,146,418.00
Average Annual Debt Service 1,122,027.20
Underwriters Fees(per$1000)
Average Takedown
Other Fee 9.000000
Total Underwriter's Discount 9.000000
Bid Price 99.100000
Par Average Average PV of I by
Bond Component Value Price Coupon Life change
Bond Component 11,555,000.00 100.000 2.204% 6.260 6,567.45
11,555,000.00 6.260 6,567.45
All-In Arbitrage
TIC TIC Yield
Par Value 11,555,000.00 11,555,000.00 11,555,000.00
+Accrued Interest
+Premium(Discount)
-Underwriters Discount (103,995.00) (103,995.00)
-Cost of Issuance Expense (66,300.00)
-Other Amounts
Target Value 11,451,005.00 11,384,705.00 11,555,000.00
Target Date 09/12/2019 09/12/2019 09/12/2019
Yield 2.352044°/u 2.453868% 2.194024%
Jun I8,2019 11:13 am Prepared by PFM Financial Advisors LLC Page 2
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BOND PRICING
City of Ames,Iowa
General Obligation Corporate Purpose Bonds,Series 2019A
Maturity
Bond Component Date Amount Rate Yield Price
Bond Component:
06/01/2020 965,000 1.730% 1.730% 100.000
06/01/2021 920,000 1.7700/. 1.770% 100.000
06/01/2022 935,000 1.800% 1.8000/u 100.000
06/01/2023 955,000 1.81ON. 1.810% 100.000
06/01/2024 970,000 1.840% 1.840% 100.000
06/01/2025 995,000 1.930% 1.9300/. 100.000
06/01/2026 1,010,000 1.9800% 1.980% I00.000
06/01/2027 920,000 2.020"/0 2.0200/6 100.000
06/01/2028 940,000 2.130% 2.130% 100.000
06/01/2029 960,000 2.180% 2.180°/n 100.000
06/01/2030 980,000 2.330% 2.330°/u 100.000
06/01/2031 1,005,000 2.970% 2.9700% 100.000
11,555,000
Dated Date 09/1 212 0 1 9
Delivery Date 09/12/2019
First Coupon 06/01/2020
Par Amount 11,555,000.00
Original Issue Discount
Production 11,555,000.00 100.000000%
Underwriters Discount (103,995.00) (0.9000000%)
Purchase Price 11,451,005.00 99.100000%
Accrued Interest
Net Proceeds 11,451,005.00
Jun 18,2019 11:13 am Prepared by PFM Financial Advisors LLC Page 3
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BOND DEBT SERVICE
City of Ames,Iowa
General Obligation Corporate Purpose Bonds,Series 2019A
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2020 965,000 1.730% 170,047.89 1,135,047.89 1,135,047.89
12/01/2020 109,832.75 109,832.75
06/01/2021 920,000 1.7700% 109,832.75 1,029,832.75 1,139,665.50
12/01/2021 101,690.75 101,690.75
06/01/2022 935,000 1.8000/0 101,690.75 1,036,690.75 1,138,381.50
12/01/2022 93,275.75 93,275.75
06/01/2023 955,000 1.810%. 93,275.75 1,048,275.75 1,141,551.50
12/01/2023 84,633.00 84,633.00
06/01/2024 970,000 1.840% 84,633.00 1,054,633.00 1,139,266.00
12/01/2024 75,709.00 75,709.00
06/01/2025 995,000 1.930% 75,709.00 1,070,709.00 1,146,418.00
12/01/2025 66,107.25 66,107.25
06/01/2026 1,010,000 1.980% 66,107.25 1,076,107.25 1,142,214.50
12/01/2026 56,108.25 56,108.25
06/01/2027 920,000 2.020°/. 56,108.25 976,108.25 1,032,216.50
12/01/2027 46,816.25 46,816.25
06/01/2028 940,000 2.130°/. 46,816.25 986,816.25 1,033,632.50
12/01/2028 36,805.25 36,805.25
06/01/2029 960,000 2.180%. 36,805.25 9%,805.25 1,033,610.50
12/01/2029 26,341.25 26,341.25
06/01/2030 980,000 2.330% 26,341.25 1,006,341.25 1,032,682.50
12/01/2030 14,924.25 14,924.25
06/01/2031 1,005,000 2.970%. 14,924.25 1,019,924.25 1,034,848.50
11,555,000 1,594,535.39 13,149,535.39 13,149,535.39
Jun 18,2019 11:13 am Prepared by PFM Financial Advisors LLC Page 4
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BOND DEBT SERVICE
City of Ames,Iowa
Portion Paid by Taxes
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2020 965,000 1.730% 162,028.24 1,127,028.24 1,127,028.24
12/01/2020 104,259.25 104,259.25
06/01/2021 825,000 1.770% 104,259.25 929,259.25 1,033,518.50
12/01/2021 96,958.00 %,958.00
06/01/2022 840,000 1.8000/0 96,958.00 936,958.00 1,033,916.00
12/01/2022 89,398.00 89,398.00
06/01/2023 855,000 1.8100/6 89,398.00 944,398.00 1,033,796.00
12/01/2023 81,660.25 81,660.25
06/01/2024 870,000 1.8400/. 81,660.25 951,660.25 1,033,320.50
12/01/2024 73,656.25 73,656.25
06/01/2025 890,000 1.930% 73,656.25 %3,656.25 1,037,312.50
12/01/2025 65,067.75 65,067.75
06/01/2026 905,000 1.980% 65,067.75 970,067.75 1,035,135.50
12/01/2026 56,108.25 56,108.25
06/01/2027 920,000 2.020% 56,108.25 976,108.25 1,032,216.50
12/01/2027 46,816.25 46,816.25
06/01/2028 940,000 2.1300/6 46,816.25 986,816.25 1,033,632.50
12/01/2028 36,805.25 36,805.25
06/01/2029 960,000 2.180% 36,805.25 996,805.25 1,033,610.50
12/01/2029 26,341.25 26,341.25
06/01/2030 980,000 2.330% 26,341.25 1,006,341.25 1,032,682.50
12/01/2030 14,924.25 14,924.25
06/01/2031 1,005,000 2.970% 14,924.25 1,019,924.25 1,034,848.50
10,955,000 1,546,017.74 12,501,017.74 12,501,017.74
Jun 18,2019 11:13 am Prepared by PFM Financial Advisors LLC Page 5
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BOND DEBT SERVICE
City of Ames,Iowa
Portion Paid by TIF
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2020 4,275.66 4,275.66 4,275.66
12/01/2020 2,971.50 2,971.50
06/01/2021 50,000 1.770% 2,971.50 52,971.50 55,943.00
12/01/2021 2,529.00 2,529.00
06/01/2022 50,000 1.8000/0 2,529.00 52,529.00 55,058.00
12/01/2022 2,079.00 2,079.00
06/01/2023 55,000 1.8100/0 2,079.00 57,079.00 59,158.00
12/01/2023 1,581.25 1,581.25
06/01/2024 55,000 L840% 1,581.25 56,581.25 58,162.50
12/01/2024 1,075.25 1,075.25
06/01/2025 55,000 1.930% 1,075.25 56,075.25 57,150.50
12/01/2025 544.50 544.50
06/01/2026 55,000 1.980% 544.50 55,544.50 56,089.00
320,000 25,836.66 345,836.66 345,836.66
Jun 18,2019 11:13 am Prepared by PFM Financial Advisors LLC Page 6
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BOND DEBT SERVICE
City of Ames,Iowa
Portion Paid by Utilities
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
06/01/2020 3,743.99 3,743.99 3,743.99
12/01/2020 2,602.00 2,602.00
06/01/2021 45,000 1.7700/. 2,602.00 47,602.00 50,204.00
12/012021 2,203.75 2,203.75
06/012022 45,000 1.800% 2,203.75 47,203.75 49,407.50
12/012022 1,798.75 1,798.75
06/012023 45,000 1.8100% 1,798.75 46,798.75 48,597.50
12/01/2023 1,391.50 1,391.50
06/012024 45,000 1.840% 1,391.50 46,391.50 47,783.00
12/01/2024 977.50 977.50
06/012023 50,000 1.930% 977.50 50,977.50 51,955.00
12/01/2025 495.00 495.00
06/01/2026 50,000 1.980% 495.00 50,495.00 50,990.00
280,000 22,680.99 302,680.99 302,680.99
Jun 18,2019 11:13 am Prepared by PFM Financial Advisors LLC Page 7