HomeMy WebLinkAboutSupplemental Attachments - 10:00am - 9/23/19Lir INDEPENDENT MUNICIPAL ADVISORS
Speer Financial, Inc.
ESTABLISHED 1954
KEVIN DANIEL RAPHALIATA MAGGIE ANTHONY LARRY MARK
McCANNA FORBES McKENZIE BURGER MICELI BURGER JERETINA
Chairman President Senior VP Senior GP Senior 6P Vice President Vice President
September 23, 2019
The Honorable Quentin M. Hart, Mayor
and Members of the City Council
City of Waterloo
715 Mulberry Street
Waterloo, IA 50703
Dear Mayor Hart and Council Members:
Bids were received today for the $3,645,000 Taxable General Obligation Refunding Bonds, Series 2019D.
There were ten bids received, which are listed at the bottom of this letter.
Upon examination, it is our opinion that the bid of Piper Jaffray & Co., Minneapolis, Minnesota, is the
best bid received, and it is further our opinion that the bid is favorable to the City and should be accepted.
After the sale, in order to accomplish the refunding, the par amount of the Taxable Refunding Bonds was
reduced to $3,625,000. By the City choosing to currently refund the Series 2011B Bonds, the City will realize
a gross savings of $267,201.15 and the net present value savings of $250,645.53 or 7.131% of the principal
amount of the refunded bonds. We therefore recommend that the Taxable Refunding Bonds be awarded to
that bidder at a price of $3,614,851.50, being at a true interest rate of 2.0435%.
True
Account Managers Interest Rate
Piper Jaffray & Co., Minneapolis, Minnesota 2.0438% (Original)
2.0435% (Revised)
BOK Financial Securities, Inc., Milwaukee, Wisconsin 2.0557%
Bankers' Bank, Madison, Wisconsin 2.0992%
Robert W. Baird & Co., Inc., Milwaukee, Wisconsin 2.1015%
Northland Securities, Inc., Minneapolis, Minnesota 2.1127%
Fifth Third Securities, Cincinnati, Ohio 2.1766%
UMB Bank, n.a., Kansas City, Missouri 2.3118%
D.A. Davidson Company, Denver, Colorado 2.3470%
INTL-FC Stone, Atlanta, Georgia 2.3599%
Bernardi Securities, Inc., Chicago, Illinois 2.4480%
LB/mr
Enclosures
Respectfully submitted,
SPEER FINANCIAL, INC.
Larry P. Burger, Vice President
SUITE 4100 • ONE NORTH LASALLE STREET • CHICAGO. ILLINOIS 60602 • (312) 346-3700 • FAX (312) 346-8833
SUITE 608 • 531 COMMERCIAL STREET • WATERLOO. IOWA 50701 • (319) 291-2077 • FAX (319) 291-8628
,..," INDEPENDENT MUNICIPAL ADVISORS • ESTABLISHED 1954
Speer Financial, Inc.
SUITE 608 • 531 COMMERCIAL STREET • WATERLOO, IOWA 50701 • (319) 291-2077 • FAX (319) 291-8628
Investment Rating:
Moody's Investors Service ... Aa2
CITY OF WATERLOO
Black Hawk County, Iowa
$3,625,000 Taxable General Obligation Refunding Bonds, Series 2019D
Bidders* Price
Piper Jaffray & Co. 99.719%
Minneapolis, Minnesota $3,634,762.60
(Original)
99.720%
$3,614,851.50
(Revised)
Date of Sale: September 23, 2019
Average Life: 3.690 Years
(Based on TIC)
Maturities Bid Par
2020
2021
2022
2023
2024
2025
2026
Bidders* Price
BOK Financial Securities, Inc. 99.901%
Milwaukee, Wisconsin $3,641,400.85
Stifel, Nicolaus & Company, Incorporated
SunTrust Robinson Humphrey
Bankers' Bank
Madison, Wisconsin
99.700%
$3,634,065.00
$ 505,000
480,000
500,000
515,000
530,000
545,000
570,000
$3,645,000
Revised
Par
$505,000
480,000
500,000
515,000
530,000
545,000
550,000
$3,625,000
Maturities
2020 - 2025
2026
True
Rates Interest**
1.950% 2.0438%
1.950% $275,515
1.950% (Original)
1.950%
1.950% 2.0435%
1.950% $272,782
2.000% (Revised)
Rates
2.000%
2.100%
2020 - 2022 1.900%
2023 1.950%
2024 2.000%
2025 2.050%
2026 2.100%
True
Interest**
2.0557%
$277,513
2.0992%
$283,065
*Syndicate information is provided by the underwriter. The information contained in this report is the most current available.
**The winning bid was adjusted to reflect the new amount of $3,625,000. All other bids were based on the pre -sale amount of $3,645,000.
**The true interest rate reflects the time value of money where dollars spent in early years have a greater weight than dollars spent in later years.
Speer Financial, Inc.
( 7 INDEPENDENT MUNICIPAL ADVISORS
Page 2
True
Bidders* Price Maturities Rates Interest**
Robert W. Baird & Co., Inc. 99.740% 2020 - 2025 2.000% 2.1015%
Milwaukee, Wisconsin $3,635,545.35 2026 2.100% $283,369
Northland Securities, Inc. 99.653% 2020 - 2025 2.000% 2.1127%
Minneapolis, Minnesota $3,632,374.30 2021 2.050% $284,657
Fifth Third Securities 99.565% 2020 - 2024 2.000% 2.1766%
Cincinnati, Ohio $3,629,154.60 2025 2.050% $293,171
2026 2.150%
UMB Bank, n.a. 99.555% 2020 - 2021 2.000% 2.3118%
Kansas City, Missouri $3,628,779.75 2022 2.050% $311,483
2023 2.100%
2024 2.150%
2025 2.250%
2026 2.300%
D.A. Davidson Company
Denver, Colorado
INTL-FC Stone
Atlanta, Georgia
Bernardi Securities, Inc.
Chicago, Illinois
99.402% 2020 2.000% 2.3470%
$3,623,216.25 2021 2.050% $315,798
2022 2.100%
2023 2.120%
2024 2.150%
2025 2.200%
2026 2.270%
99.257% 2020 - 2022 2.100% 2.3599%
$3,617,931.25 2023 - 2024 2.125% $317,094
2025 2.150%
2026 2.200%
99.300% 2020 2.000% 2.4480%
$3,619,485.00 2021 2.050% $329,262
2022 2.100%
2023 2.150%
2024 2.200%
2025 2.300%
2026 2.400%
*Syndicate information is provided by the underwriter. The information contained in this report is the most current available.
* *The winning bid was adjusted to reflect the new amount of $3,625,000. All other bids were based on the pre -sale amount of $3,645,000.
* *The true interest rate reflects the time value of money where dollars spent in early years have a greater weight than dollars spent in later years.
Speer Financial, Inc.
INDEPENDENT MUNICIPAL ADVISORS
City of Waterloo, Iowa
$8,655,000 General Obligation Bonds, Taxable Series 2011B
*** FINAL - for Current Refunding 2019 ***
Total Refunded Debt Service
Date Principal Coupon Interest Total P+I
06/01/2020 440,000.00 3.500% 146,797.50 586,797.50
06/01/2021 455,000.00 3.750% 131,397.50 586,397.50
06/01/2022 475,000.00 4.000% 114,335.00 589,335.00
06/01/2023 500,000.00 4.250% 95,335.00 595,335.00
06/01/2024 520,000.00 4.400% 74,085.00 594,085.00
06/01/2025 545,000.00 4.500% 51,205.00 596,205.00
06/01/2026 580,000.00 4.600% 26,680.00 606,680.00
Total 53,515,000.00 8639,835.00 $4,154,835.00
11B Moo Tax GO for C Ref 1 SINGLE PURPOSE 1 9/23/2019 1 12:33 PM
Speer Financial, Inc.
Registered Municipal Advisor
LifSpeer Financial, Inc.
INDEPENDENT MUNICIPAL ADVISORS
19D Moo 3.625Tax GO Reif 1 SINGLE PURPOSE I 9/23/2019 1 12:33 PM
Speer Financial, Inc.
Registered Municipal Advisor
City of Waterloo, Iowa
$3,625,000 Taxable General Obligation Refunding Bonds, Series 2019D
*** FINAL ***
Debt Service Schedule
Call
Date
Principal
Coupon
Interest
Total P+I
06/01/2020
06/01/2021
06/01/2022
06/01/2023
06/01/2024
505,000.00
480,000.00
500,000.00
515,000.00
530,000.00
1.950%
1.950%
1.950%
1.950%
1.950%
43,168.85
61,115.00
51,755.00
42,005.00
31,962.50
548,168.85
541,115.00
551,755.00
557,005.00
561,962.50
06/01/2025
06/01/2026
Total
545,000.00
550,000.00
$3,625,000.00
1.950%
2.000%
-
21,627.50
11,000.00
$262,633.85
566,627.50
561,000.00
$3,887,633.85
Yield Statistics
Bond Year
$13,375.21
LifeDollars
Average3.690
Years
Average Coupon
1.9635870%
Net Interest Cost (NIC)
11
2.0394624%
True Interest Cost (TIC)
2.0435947%
Bond Yield for Arbitrage Purposes
1.9167007%
All Inclusive Cost (AIC)
2.3381467%
IRS Form 8038
Net Interest Cost
1.9163355%
Weighted Average Maturity
3.689 Years
19D Moo 3.625Tax GO Reif 1 SINGLE PURPOSE I 9/23/2019 1 12:33 PM
Speer Financial, Inc.
Registered Municipal Advisor
jrt Speer Financial, Inc.
INDEPENDENT MUNICIPAL ADVISORS
Gross PV Debt Service Savings
Net PV Cashflow Savings @ 2.338%(AIC)
Contingency or Rounding Amount
Net Present Value Benefit
Net PV Benefit / $3,515,000 Refunded Principal
248,554.64
248,554.64
2,090.89
$250,645.53
Net PV Benefit / $3,625,000 Refunding Principal
Refunding Bond Information
7.131%
6.914%
Refunding Dated Date
Refunding Delivery Date
19D Wloo 3.625Tax GO Ref1 SINGLE PURPOSE r 9/23/2019 12:33 PM
Speer Financial, Inc.
Registered Municipal Advisor
10/22/2019
10/22/2019
City of Waterloo, Iowa
$3,625,000 Taxable General Obligation Refunding Bonds, Series 2019D
*** FINAL ***
Debt Service Comparison
Date
Total P+I
Net New D/S
Old Net D/S
Savings
06/01/2020
06/01/2021
548,168.85
548,168.85
586,797.50
38,628.65
06/01/2022
541,115.00
541,115.00
586,397.50
45,282.50
06/01/2023
551,755.00
551,755.00
589,335.00
37,580.00
06/01/2024
557,005.00
557,005.00
595,335.00
38,330.00
561,962.50
561,962.50
594,085.00
32,122.50
06/01/2025
06/01/2026
566,627.50
566,627.50
596,205.00
29,577.50
561,000.00
561,000.00
606,680.00
45,680.00
Total
$3,887,633.85
$3,887,633.85
54,154,835.00
$267,201.15
PV Analysis Summary /Nat to Not►
Gross PV Debt Service Savings
Net PV Cashflow Savings @ 2.338%(AIC)
Contingency or Rounding Amount
Net Present Value Benefit
Net PV Benefit / $3,515,000 Refunded Principal
248,554.64
248,554.64
2,090.89
$250,645.53
Net PV Benefit / $3,625,000 Refunding Principal
Refunding Bond Information
7.131%
6.914%
Refunding Dated Date
Refunding Delivery Date
19D Wloo 3.625Tax GO Ref1 SINGLE PURPOSE r 9/23/2019 12:33 PM
Speer Financial, Inc.
Registered Municipal Advisor
10/22/2019
10/22/2019