CC 09-15-2020 Item No. 10 Cupertino 2020A Certificates of Participation_Staff PresentationCC 09-15-20
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Cupertino 2020A
Certificates of
Participation
Presentation
City Council and Cupertino Public Facilities Corporation Board PresentationSeptember 15, 20202020A Certificates of ParticipationCC 09-15-2020 Item No. 10
Financing Team●Urban Futures, Inc., Municipal Advisor●Stradling Yocca Carlson & Rauth, Special Counsel and Disclosure Counsel●Stifel, Nicolaus & Company, Incorporated, Underwriter●The Bank of New York Mellon Trust Company, N.A., Trustee and Escrow Bank
2012 Certificates of Participation●Rated AA+●Originally issued $43.940 million and currently outstanding in the amount of $27.010 million●Interest rates ranging from 3.000% to 3.125%●Final maturity of July 1, 2030●Can be currently refunded for debt service savings without penalty (interest rates are near historical lows)
2020A Certificates of ParticipationIssuance of $22.695 million 2020A Certificates of Participation (COPs) to refund the 2012 Certificates of Participation (Results are preliminary and subject to change)(1)Includes underwriter’s discount and costs of issuance.
Estimated Savings (Preliminary and subject to change)●$4.15 million in total debt service savings●$415,000 in annual debt service savings●$2.26 million in net present value savings●8.36% of refunded par●Savings are net of all costs of issuance and will benefit the General Fund
Security for the 2020A COPs●Lease payments for the Leased Premises from any source of legally available funds of the City (annual appropriation covenant, subject to abatement, ability to re-enter and re-let)●Leased Premises: City Hall and Administrative Offices, Community Hall/City Council Chambers, Quinlan Community Center
Public Facilities Corporation●Nonprofit public benefit corporation formed in 1986●Operates under existing laws of the State of California●Authority to assist in the financing and refinancing of the construction, reconstruction, modernization and equipping of certain capital improvements on behalf of the City of Cupertino●The City Council comprises the Board of Directors and include the President, Vice President, Secretary (1 or more), and Treasurer (1 or more) of the Corporation
City and Corporation ActionsCity Council and Corporation Board consider adoption of Resolution to authorize issuance of 2020A COPs (not to exceed $27 million), approve financing team, and approve final form of financing documents City Documents•Site Lease•Lease Agreement•Trust Agreement•Escrow Agreement•Termination Agreement•Certificate Purchase Agreement•Preliminary Official Statement•Amended Debt Management PolicyCorporation Documents•Site Lease•Lease Agreement•Assignment Agreement•Trust Agreement•Termination Agreement•Preliminary Official Statement•Amended Debt Management Policy
Financing Schedule●Sept 16: Meeting with S&P Global Ratings●Sept 23 or 24: Receive rating●Sept 24 or 28: Post Preliminary Official Statement●Week of Sept 28 or Oct 5: Price COPs (Certificate Purchase Agreement signed)●Week of Oct 19 or Oct 26: Bond Issuance/Closing
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