HomeMy WebLinkAboutIR 10037 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10037
To the Mayor and Members of the City Council August 1, 2017
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SUBJECT: FINAL PRICING RESULTS OF THE 2017A & 2017B SPECIAL TAX
LAW REVENUE BONDS FOR THE DICKIES ARENA
This informal report is intended to provide the Mayor and City Council with a summary of the
results from our 2017A and 2017B Special Tax Revenue bond sale, which was completed on
Tuesday, June 20, 2017, providing funding for the City's contribution to the Dickies Arena. The
sales details of the bonds are presented below.
Background
On June 6th, the Mayor and Council approved the bond ordinance authorizing the sale of 2017A
and 2017B Special Tax Revenue Bonds. The ordinance included parameters which required
specific actions and events to be realized in order for the sales of debt to be consummated.
The City offered the debt utilizing a negotiated sale process with the assistance of our co-financial
advisors, FirstSouthwest, a Division of Hilltop Securities Inc. and Estrada Hinojosa & Co. Results
of the bond pricings are highlighted on the following pages.
Overview of Pricing
A summary of the final pricing results compared to the original estimates is provided below:
Summary of Series 2017A June 2nd Final Results M&C Authorization
Tax-Exempt Financing Results Estimates Parameters
Total Par Amount $84,835,000 $86,170,000 $120,000,000
Net Premium $11,427,588 $11,121,074
Delivery Date Expenses $998,122 $995,108 $1,280,000
True Interest Cost 3.89% 3.95%
Maximum Annual Debt Service $6,205,600 $6,333,306
Average Annual Debt Service $6,079,310 $6,194,575
Average Life Years 16.783 16.743
Summary of Series 2017B June 2nd Final Results M&C Authorization
Taxable Financing Results Estimates Parameters
Total Par Amount $142,530,000 $140,710,000 $150,000,000
Delivery Date Expenses $1,624,389 $1,543,739 $1,840,000
True Interest Cost 4.35% 4.09%
Maximum Annual Debt Service $8,955,503 $8,596,466
Average Annual Debt Service $8,742,690 $8,377,935
Average Life (Years) 18.839 18.713
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10037
To the Mayor and Members of the City Council August 1, 2017
Page 2 of 2
�i7 Y
SUBJECT: FINAL PRICING RESULTS OF THE 2017A & 2017B SPECIAL TAX
rrA REVENUE BONDS FOR THE DICKIES ARENA
The four underwriters who participated in the negotiated sale included Citigroup, Loop Capital
Markets, Wells Fargo Securities, as well as J.P. Morgan, who also acted as the lead underwriter.
Retail Order Period
Unique to this transaction, the City offered a "retail order period" to residents interested in
purchasing the debt as a personal investment. In conjunction with our financial advisors and lead
underwriter, the City launched a print advertisement campaign to educate our community about
the opportunity to purchase this debt before it was offered to institutional investors. The retail
order period was a success, and a summary of those results are below:
Summary of Series 2017A Total Orders Total Investment
Retail Order Period
Fort Worth Citizens 38 $1,510,000
Texas Residents (a) 20 $2,310,000
Total Retail Investor Participation 58 $3,820,000
(a) These orders came from citizens of Arlington, Azle, Cleburne, Colleyville, Dallas, Denton,
Hurst, Kerrville, North Richland Hills, Southlake, Tyler and Waco
Summary of Series 2017B Total Orders Total Investment
Retail Order Period
Fort Worth Citizens 11 $505,000
Texas Residents (a) 3 $15,000
Other (b) 1 $500,000
Total Retail Investor Participation 15 $1,020,000
(a) These orders came from citizens of Plano and Keller
b This order came from a buyer in Los Angeles, California
If you have any questions, please call Aaron Bovos, Chief Financial Officer, at 817-392-8517.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS