HomeMy WebLinkAboutEntrada Project PID Financing presentation 1,5
Town of Westlake
Entrada Project PI D Financing Presentation F
Presentations from Development & Finance Team y.
w
Decembers`2013
Jefferies LLC
Member SIPC
Financing
Town Bond Counsel Leroy Crawunder, McCall
Town Financial Advisor I Tom Lawrence, Lawrence F
Thom PID Financin g Program Coordinator
Developer PID Counsel Robert Miklos, Milby PLLC
PID SAP Consultant r b�di Yassin Munica r
Development Manager Michael Beaty, Blackard Cl
Project Engineer Bobby Dollak, C A Consull
J
Underwriters Counsel Eric Johnson, Andrews & K
j !
Jefferies LLC!December 9,2013 2
Proposed PID Debt Structure - Global Overview
Land Secured Debt with NO City Guarantee or Liability
Special Assessments to secure the annual debt service paymer
Debt issue(s) to reflect a 3: 1 Value to Lien (33% loan)
_Appraisal to assume bond funded improvements are in place
,--. No other private development is assumed in appraisal
Bond Sizing based on independent MAI appraisal
Jefferies LLC 1 December 9,2013 3
Debt Issuance Proposal
Series 2014 Bonds will be sized at 1/3 the Appraised Value
-- If this fully funds all infrastructure, no additional debt issues
-- If this sizing is not adequate for 100% of qualified infrastruc
Property Owner will fund required balance in cash at bond closing
This cash advance will be subject to reimbursement via a parity be
when property values have increased
Jefferies LLC/December 9,2013 4
Debt Issuance Proposal
Future Parity Bond issue will:
Fully reimburse Property Owner 2014 cash advance
----Will be issued as parity (equal senior lien) to the 2014 bond!
,--Will only be issued once substantial development has occurr(
property values have increased
--An Additional Bonds Test governing the issuance of the parit,
will be formulated as a part of the Series 2014 bonds if neCE
Jefferies LLC/December 9,2013 cJ
Funding Overview Supporting
Funding Program
One Unique Factor — Second PID to be formed for public infrac
maintenance
Maintenance PID will fund maintenance of the infrastructure b
constructed by the PI D
PID Program will fund 100% of the City Staffing & Consultant!
PID Financing Program AND maintenance of the public infrast
Jefferies LLC/December 9,2013
Next Presentations:
N Proj
Municipal Marketplace for Well Structured PID DE
With 3: 1 Value to Lien and a Strong Location there will be bro;
acceptance
Anticipate qualifications at all major High Yield Municipal Mutual Funds
Anticipate qualification at all major Municipal Private Equity Funds
Expect Many Municipal Trust Funds to qualify this financing
Major Market Constraints will be the desired call protection
Ideal would be 5 year call protection so that debt can be refunded with substa
development
Many major market participants will call for 10 year call protection
Jefferies LLC/December 9,2013 8
Presentation of the Cash-Flows
e
Reserve Fund Equal to Maximum Annual Debt Service — funde
Bond Proceeds
4 Capitalized Interest for the Construction Period
Debt Term at Standard 30 years
All financing costs funded from the PI D bond issue
Hypothetical and conservative 7.5% rate shown in cash-flows
Expected average interest rate to be under 7% based on 12/2C
market
Jefferies LLC/December 9,2013 9
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Detailed Cash-Flows
Jeff ,ESZ December«32 10
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NET DEBT SERVICE
Town of Westlake,Texas
2014 Phase 1 Improvement Area Bonds
Period Total Cash-Flow Prepayment Capitalized Debi
Ending Principal Interest Debt Service Reserve Reserve Interest Reser
Sep 1, 2014 762,666.67 762,666.67 30,506.67 20,337.78 -762,666.67
Sep 1, 2015 2,145,000.00 2,145,000.00 85,800.00 57,200.00 -2,145,000.00
Sep 1, 2016 - 2,145,000.00 2,145,000.00 85,800.00 57,200.00 -172,791.67
Sep 1, 2017 40,000 2,145,000.00 2,185,000.00 85,800.00 57,200.00
Sep 1,2018 75,000 2,142,000.00 2,217,000.00 85,680.00 57,120.00
Sep 1, 2019 115,000 2,136,375.00 2,251,375.00 85,455.00 56,970.00
Sep 1, 2020 155,000 2,127,750.00 2,282,750.00 85,110.00 56,740.00
Sep 1,2021 195,000 2,116,125.00 2,311,125.00 84,645.00 56,430.00
Sep 1, 2022 245,000 2,101,500.00 2,346,500.00 84,060.00 56,040.00
Sep 1, 2023 295,000 2,083,125.00 2,378,125.00 83,325.00 55,550.00 -
Sep 1,2024 350,000 2,061,000.00 2,411,000.00 82,440.00 -
Sep 1, 2025 410,000 2,034,750.00 2,444,750.00 81,390.00
Sep 1, 2026 480,000 2,004,000.00 2,484,000.00 80,160.00
Sep 1, 2027 550,000 1,968,000.00 2,518,000.00 78,720.00
Sep 1, 2028 630,000 1,926,750.00 2,556,750.00 77,070.00
Sep 1, 2029 715,000 1,879,500.00 2,594,500.00 75,180.00 -
Sep 1, 2030 805,000 1,825,875.00 2,630,875.00 73,035.00 -
Sep 1, 2031 910,000 1,765,500.00 2,675,500.00 70,620.00 -
Sep 1, 2032 1,015,000 1,697,250.00 2,712,250.00 67,890.00 -
Sep 1, 2033 1,135,000 1,621,125.00 2,756,125.00 64,845.00 -
Sep 1, 2034 1,265,000 1,536,000.00 2,801,000.00 61,440.00 -
Sep 1, 2035 1,400,000 1,441,125.00 2,841,125.00 57,645.00 -
Sep 1,2036 1,550,000 1,336,125.00 2,886,125.00 53,445.00 -
Sep 1, 2037 1,715,000 1,219,875.00 2,934,875.00 48,795.00 -
Sep 1, 2038 1,890,000 1,091,250.00 2,981,250.00 43,650.00 -
Sep 1, 2039 2,080,000 949,500.00 3,029,500.00 37,980.00 -
Sep 1,2040 2,290,000 793,500.00 3,083,500.00 31,740.00 -
Sep 1, 2041 2,515,000 621,750.00 3,136,750.00 24,870.00 -
Sep 1, 2042 2,755,000 433,125.00 3,188,125.00 17,325.00 -
Sep 1, 2043 3,020,000 226,500.00 3,246,500.00 9,060.00 -
28,600,000 48,337,041.67 76,937,041.67 1,933,481.67 530,787.78 -3,080,458.34 -2,1
Nov 25, 2013 12:13 pm
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