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HomeMy WebLinkAboutSpear Financial, Inc. - Recommendation to award ,irSpeer Financial, Inc. INDEPENDENT MUNICIPAL ADVISORS ESTABLISHED 1954 DANIEL FORBES RAPHALIATA McKENZIE MAGGIE BURGER ANTHONY MICELI MARK JERETINA AARON GOLD President Senior Vice President Senior Vice President Senior Vice President Senior I'ice President Vice President November 14, 2024 Mr. Andy Van Fleet, Board Chairperson Waterloo Municipal Communications Utility 625 Glenwood St. Waterloo, IA 50703 Dear Board Chairperson and Members of the Board: Cedar Rapids Bank & Trust, Cedar Rapids, Iowa, in association with Piper Sandler, Des Moines,Iowa,acting as placement agent,has submitted a proposal for the purchase of the$4,000,000 Taxable Communication Utility Bond Anticipation Project Notes, Series 2024 being sold by the Waterloo Communications Utility, Iowa. This new agreement amends the prior agreement for $2,000,000 in 2023. Upon examination, it is our opinion that the proposal is favorable to the Utility and should be accepted. We therefore recommend that the Notes be awarded to the proposer at a price of $4,000,000, being at a true interest cost of 5.7514%. The amounts and rates for each year are as follows: Year Principal Rate 2026 $4,000,000 5.75% Respectfully submitted, SPEER FINANCIAL, INC. —M.Cti-3-4r- Maggie Burger, Sr. Vice President MB Enclosures SUITE 2630.230 WEST MONROE STREET•CHICAGO,ILLINOIS 60606•(312)346-3700•FAX(312)346-8833 SUITE 608•531 COMMERCIAL STREET•WATERLOO,IOWA 50701 •(319)291 2077•FAX(319)291-8628 1 Waterloo Communications Utility,Iowa $4,000,000 Taxable Communications Utlity Revenue Note Anticipation Notes, Series **FINAL** Total Issue Sources And Uses Dated 12/02/2024 I Delivered 12/02/2024 Mar 10 June 10 Sept 10 Issue Closing Draw 2025 2025 2025 Summary Sources Of Funds Par Amount of Bonds $2,650,000.00 $450,000.00 $450,000.00 $450,000.00 $4,000,000.00 Total Sources S2,650,000.00 $450,000.00 $450,000.00 $450,000.00 $4,000,000.00 Uses Of Funds Costs of Issuance 45,450.00 - - - 45,450.00 Deposit to Project Construction Fund 2,604,550.00 450,000.00 450,000.00 450,000.00 3,954,550.00 Total Uses $2,650,000.00 $450,000.00 $450,000.00 $450,000.00 $4,000,000.00 25 Wloo MCU$4m WC Multi I Issue Summary I 11/1/2024 I 12:59 PM Speer Financial, Inc. Registered Municipal Advisors Waterloo Communications Utility,Iowa $4,000,000 Taxable Communications Utlity Revenue Note Anticipation Notes, Series **FINAL** Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 12/02/2024 - - - - - 06/01/2025 - - 81,586.12 81,586.12 - 12/01/2025 - - 107,237.51 107,237.51 188,823.63 06/01/2026 - - 115,000.00 115,000.00 - 12/01/2026 4,000,000.00 5.750% 115,000.00 4,115,000.00 4,230,000.00 Total $4,000,000.00 - $418,823.63 $4,413,823.63 - Yield Statistics Bond Year Dollars $7,283.89 Average Life _ 1.821 Years Average Coupon 5.7500003% Net Interest Cost(NIC) 5.7500003% True Interest Cost(TIC) 5.7514948% Bond Yield for Arbitrage Purposes 5.7514948% All Inclusive Cost(AIC) 6.4294585% IRS Form 8038 Net Interest Cost 5.7500003% Weighted Average Maturity 1.821 Years 25 Wloo MCU$4m WC Multi I Issue Summary 111/1/2024 12.59 PM Speer Financial, Inc. Registered Municipal Advisors