benefits to borrower from a fhlb-wrapped bond instead of a ...ledahf.org/images/ledahf_vrdn.pdf ·...
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Benefits to Borrower from a FHLB-wrapped Bondinstead of a conventional mortgage loan
The bond debt has many advantages to a Borrower over a conventional mortgage loan
• Very low cost –• Interest rate is approximately LIBOR + .65%, which today is less than 2% annually• Origination fees are approximately 1-3% (depending on the bond amount) plus the cost
of the Letter of Credit• If qualified, FHLB credit enhancement only adds approx. 15 basis points (.0015) to the
total cost and gives the bonds an investment grade (S&P AA+) credit rating.• Flexible interest adjustment periods - from 7-day adjustable to 30 year fixed rate• Flexible term – debt may be increased or reduced as desired from time to time, as often as
weekly, without prepayment penalties• Interest-only - subject to bank approval• Non-recourse - subject to bank approval
Federal Home Loan Banks encourage members to issue Letters of Credit instead of funding conventional mortgage loans
According to the Federal Home Loan Bank of Atlanta:
“Two critical challenges facing most financial institutions today are the decline of fee income and the highly competitive lending market. Fee income is being compressed on multiple fronts, hurting revenue growth in an already low-interest-rate environment. Credit card processing fees have fallen and overdraft fees have been slashed through legislation. Additionally, the cut-throat competition for lending has driven down loan origination fees and rates.An FHLBank Atlanta Confirming Letter of Credit can serve as an excellent alternative to facilitating commercial financing deals, reducing costs to borrower and generating valuable fee income from an off balance sheet transaction for the lender. (emphasis added)
Benefits of Confirming letters of Credit vs. Commercial Loans• Reduce customer’s financing costs, strengthening the relationship• Improve marketability of the customer’s bond financing in the capital markets• Generate fee income from the Letter of Credit• Facilitate customer financing without taking interest rate risk
(Letter of Credit is off-balance sheet)• Compete on structure and trusted advisor relationship with customers vs. loan pricing”
Benefits to banks from providing Letters of Credit instead of conventional mortgage loans
Banks benefit from facilitating bond debt in many ways:
• Normal underwriting standards. The refinance is underwritten by a bank just as if it is a conventional mortgage but, instead of funding cash, the bank delivers a Letter of Credit for the benefit of the Borrower to the Trustee for LEDAHF’s public debt.
• Off-balance sheet. The Letter of Credit is an off-balance sheet item with much lower cost to the bank.
• More profitable and longer duration. The bank is paid a fee for the initial term of the Letter of Credit, and an annual renewal fee thereafter (for up to 30 years).
• Less risk. Because the debt service is so greatly reduced, the bank is in a much more secure position with a far greater debt service coverage ratio than if a conventional mortgage loan. In cases when there is insufficient cash flow for debt service, a LEDAHF will concurrently fund the acquisition of a Stabilized Income Property with sufficient cash flow to provide adequate debt service coverage.
The Income Property Substantially Reduces Risk
The only risk to the Letter of Credit is if the bond debt is not paid when due.
A “lock-box” or other arrangement can be established with the Trustee to assure that cash flow from the collateral asset (NOI or dividends) is used to pay the bond debt.
Because of the reduced interest cost, the stabilized income from refinanced income properties can generate sufficient cash flow (2-5x debt service) to assures the bond debt is always paid.
The remaining income is available to the Owner.
Letter of Credit Substitutionor Credit Enhancement, as needed
The Letter of Credit must be “investment-grade” to get a very low interest rate• LEDAHF issues corporate debt (bond financing) in the public capital markets in the form of a
multi-modal Variable Rate Demand Note [“VRDN”] which is guaranteed by the Letter of Credit. Because this debt is guaranteed by a bank Letter of Credit, it is exempt from many burdensome securities requirements and carries the credit rating of the guarantee bank.
• The Letter of Credit for the benefit of the Borrower that is issued to guarantee the bond must be investment grade to warrant a very low interest rate on the bond.
• If a bank does not want to renew a Letter of Credit, or if the credit rating of the guarantee bank is downgraded, the Borrower may substitute a Letter of Credit from a different bank having an acceptable credit rating.
• For FHLB-member banks and qualifying properties, the credit rating of a Letter of Credit may be enhanced by a Federal Home Loan Bank confirming letter of credit [a “wrap” ] resulting in Institutional Investment Grade (i.e. S&P AA+).
How does the program work?
A bank opens a Letter of Credit for Borrower, secured by Borrower’s asset(s), in the name of LEDAHF and delivers the Letter of Credit (in escrow) to a designated Trustee (BNY Mellon, US Bank, RegionsBank, etc.)
Bank
TrusteeSecured Letterof Credit
Borrower
How does the program work?
Bank issues a Direct-pay Letter of Credit which is pledged to guarantee payment of a publicly-marketed bond
Secured Letter
of Credit
Variable Rate Demand Notes (public debt)
How does the program work?
Raymond James sells corporate bonds (VRDN) secured by the pledged Letter of Credit to generate VERY LOW COST CASH
Secured Letter
of Credit
Very LowCost
CASH
How does the program work?
The Trustee pays the Cost of Issuance then disburses the remaining low-cost cash to Borrower
Borrower
LowCostCash
Trustee
Cost of Issuance
Fees and Cost of Issuance
Variable Rate Demand Notes (public debt)
Sample List of Major Participants1. Issuer Linked Economic Development &
Affordable Housing Foundation, Inc.1. Trustee BNY Mellon Trust2. Borrower PTGH-EO Urban Renewal LLC3. Front Bank A FHLB-member Bank4. FHLB “wrap” A Federal Home Loan Bank5. Rating Agency Standard & Poor's6. Marketing/Remarketing Agent Raymond James7. Bond Counsel Jones Walker8. Depository Depository Trust Corporation
Schematic Illustration of Major Participants
Borrower
TBD
Asset
Real Estate
Borrower’sCounsel
TBD
Front BankFHLB-member Bank
FHLB
TBD
Lender’s Counsel
TBD
Trustee
BNY Mellon
Issuer
LEDAHF
Marketing Agent
Raymond James
Depository
DTC
Bond Counsel
Jones Walker
Rating AgencyStandard & Poor’s
FHLB Letter of Credit Marketing 1. Excerpt from FHLB-Atlanta website: Win Business and Generate
Income with a Confirming Letter of Credit2. Article: Win Business and Generate Income with Letters of Credit3. Article: Letters of Credit Enhancements for Bond Financings4. Article: Letters of Credit Overview5. Excerpt from FHLB-New York website: Form a Strategic Alliance with
a FHLBNY Letter of Credit6. FHLBNY Sample Irrevocable Stand-by Letter of Credit
11/5/2016 Win Business and Generate Income with Letters of Credit
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March 2016
Article
March 2016 In toda’ environment of peritent net interet margin preure and intene
competition for lending uine, communit anker need an evergrowing arenal of tool to
achieve their growth and profitailit target. Financial trategie and olution that provide
alance heet flexiilit, preerve net interet margin, and help intitution uild relationhip
in their local market are ke to gaining a competitive edge.
While FHLank Atlanta hareholder intitution have long relied on advance to fund lending
and manage interetrate rik, a growing numer of intitution are alo eeing the advantage
Letter of Credit can ring to their uine development and alance heet management
trategie. The ank’ Letter of Credit function a an independent guarantee of an intitution’
oligation to a third part, and erve a numer of purpoe – from providing credit
enhancement on ond tranaction to ecuring leae depoit to collateralizing depoit from
pulic entitie. The can help intitution of all ize trengthen relationhip, win new uine,
and generate valuale fee income.
Securing Pulic Unit Depoit
The mot common uage of the ank’ Letter of Credit i to collateralize pulic unit depoit
(PUD) that exceed the amount inured the FDIC. Quantum National ank, an FHLank
Atlanta hareholder aed in Suwanee, Georgia, ha ued the ank’ Letter of Credit to ecure
PUD for everal ear.
According to Quantum’ Chief Financial Officer Dana Litman, the communit ank hitoricall
ha not held a large ecuritie portfolio and the proce to pledge and releae ecuritie to ack
depoit from local municipal cutomer wa too dependent on human intervention. Uing a
Letter of Credit to collateralize PUD not onl reduced Quantum’ adminitrative work, ut alo
helped the intitution implif and trengthen it relationhip with their pulic entit partner.
Win uine and Generate Income withLetter of Credit
11/5/2016 Win Business and Generate Income with Letters of Credit
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“Once we got the pulic entit comfortale with the letter of credit proce, it wa an eail
undertood and efficient wa to collateralize depoit,” aid Litman.
“We’ve worked diligentl over the lat three ear to expand and deepen uine relationhip
with local pulic entitie and FHLank Atlanta i helping u do that,” continued Litman. “We
expect thi effort to continue to ear fruit and we are eeing an increae of aout 50 percent in
uine with pulic entitie."
Furthermore, with a Letter of Credit erving a depoit collateral, intitution can deplo aet
for higher incomegenerating ue, uch a invetment partnerhip and originating new loan.
Litman of Quantum cited thi enefit a another advantage of the Letter of Credit.
“Quantum ha one of the highet net interet margin in the tate of Georgia and olution like
the Letter of Credit contriute to thee margin,” aid Litman. “The Letter of Credit helped u
free up fund to purue variou growth trategie on oth ide of the alance heet."
oot arning with Letter of Credit*
efore Uing Letter of Credit (LOC) Secure PUD with $5mm, 5ear agenc note
ielding 1.05%
Income: $5mm x 1.05% = $52,500
After Uing LOC Secure PUD with $5mm FHLank Atlanta LOC at cot of
9p and lend $5mm in 14 firt mortgage
at 4.00%
Income: $5mm x (4.00%0.09%) = $195,500
Shareholder enefit $195,500 $52,500 = $143,000 additional income when
uing FHLank Atlanta LOC
*Rate and calculation are for illutrative purpoe onl.
Win uine and Generate Income with a Confirming Letter of Credit
Two critical challenge facing mot financial intitution toda are the decline of fee income and
the highl competitive lending market. Fee income i eing compreed on multiple front,
hurting revenue growth in an alread low interetrate environment. Credit card proceing fee
have fallen and overdraft fee have een lahed through legilation. Additionall, the cutthroat
competition for lending ha driven down loan origination fee and rate.
An FHLank Atlanta Confirming Letter of Credit can erve a an excellent alternative to
facilitating commercial financing deal, reducing cot for the orrower and generating valuale
fee income from an offalance heet tranaction for the lender.
11/5/2016 Win Business and Generate Income with Letters of Credit
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© 2016 Federal Home Loan ank of Atlanta, All Right Reerved. 1.800.536.9650
Cullman Saving ank, a communit ank headquartered in Cullman, Alaama, ued an
FHLank Atlanta Confirming Letter of Credit to oth of thee advantage. The Letter of Credit
provided credit enhancement on the remarketing of a ond iuance the Surger Center of
Cullman. Acce to the FHLank Atlanta Letter of Credit enaled Cullman Saving to etalih a
new relationhip with the urger center and generate valuale fee income.
“The urger center wa looking for a anking relationhip that wa more handon and
peronal,” aid John Rile, chief executive officer at Cullman Saving. “The Letter of Credit wa
critical for u to ecure thi relationhip with the center, and the have turned into a ver good
cutomer for our intitution.”
Katrina Stephen, chief financial officer at Cullman Saving, add that the fee income from the
Letter of Credit wa an important ide enefit a well a the ailit to help thi new cutomer
ave mone.
“oth partie enefited from the letter of credit. Cullman Saving generated fee income while
the credit enhancement to the ond enaled the urger center to reduce their financing cot,”
aid Stephen. “It’ an allaround good deal for the relationhip and our trut level with thi
cutomer remain ver good.”
enefit of Confirming Letter of Credit v. Commercial Loan
Reduce cutomer’ financing cot, trengthening the relationhip
Improve marketailit of the cutomer’ ond financing in the capital market
Generate fee income from the Letter of Credit
Facilitate cutomer financing without taking on interetrate rik
(Letter of Credit i offalance heet)
Compete on tructure and truted advior relationhip with cutomer v. loan pricing
For additional information on Letter of Credit, call Patrick Rutledge, Pulic Finance
Relationhip Manager at 404.888.8328 or [email protected].
The Federal Home Loan ank of Atlanta i not a regitered invetment advior. Nothing herein i
an offer to ell or a olicitation of an offer to u an ecuritie or derivative product. You hould
conult our own legal, financial, and accounting advior efore entering into an tranaction.
Interet rate preented in thi article are for illutrative purpoe onl.
www.fhlbc.com Federal Home Loan Bank of Chicago
Letters of Credit Process FlowBond Enhancements
BorrowerMunicipal
Project
BondTrustee
MunicipalBondholder
Member
FHLBC
Letters of CreditEnhancements for Bond Financings
Consider Letters of Credit for Bond EnhancementYour customer may need a letter of credit (LC) from arated bank to arrange financing for a housing or com-munity economic development project with proceedsfrom a bond issuance. Consider using an LC issued bythe Federal Home Loan Bank of Chicago (FHLBC) tostand behind your customer’s bond issuance andstrengthen your customer relationship.
Members that are unrated, or that have less than anAaa or AA+ rating, may apply for an FHLBC standby ordirect pay LC, which will guarantee the principal andinterest payments to bondholders and credit enhancethe bonds with the FHLBC’s Aaa/AA+ rating. Direct payLCs issued by the FHLBC also accommodate multi-member participation structures.
The FHLBC offers support for taxable and tax-exemptbond financing for housing projects and for taxablebonds for community economic development activities.
How It Works• The FHLBC member workswith the borrower and under-writers to determine projectfeasibility and terms of bondfinancing.
• In most cases, the FHLBCissues a standby LC in supportof a member’s LC, under whichthe FHLBC promises to makepayments for the benefit of thebondholders if the memberdoes not pay under its LC.Alternatively, the FHLBC alsooffers direct pay LCs underwhich the FHLBC provides theprimary payment mechanismon the bonds.
• Bonds are issued with theFHLBC rating, which increasesthe marketability of the bondsand reduces the financing costs.
Member provides direct pay LC.
Bond trustee distributes
bond proceeds to fund
project.
Borro
wer pays
LC
fee an
d reim
burse
s
P&I draw
s.
Bond trustee draws P&I in accordance with bond indenture.
Memberpaysannualfee.
FHLBC providesstandbyLC.
BondtrusteedisbursesP&I.
Municipalbondholderpurchasesmunicipalbonds.
www.fhlbc.com Federal Home Loan Bank of Chicago
Proceeds from eligible bond issuancescan help finance a range of projectsincluding, but not limited to:• Housing developments• Health care facilities• Schools and universities• Manufacturing facilities
Member Benefits• Strengthen local customer relationships;• Provide project financing opportunities that
support community economic development andaffordable housing projects;
• Improve bond-related transaction costs;• Allows local financial institutions to compete
with larger, rated banks;• Leverage the FHLBC’s Aaa/AA+ rating;• Provide liquidity by serving as an alternative
form of collateral for various transactions; and• Help members manage asset/liability positions.
Community Investment Cash Advance (CICA) Eligibility Members can benefit from discounted pricing on proj-ects eligible under our Community Investment CashAdvance (CICA) Program. In most cases, non-housingprojects must be CICA-qualified in order to obtain anFHLBC LC. Additional documentation will be required.
Housing Non-Housing
Taxable CICA or non-CICA CICA Required
Tax-Exempt CICA or non-CICA Not Permitted*
*Housing and Economic Recovery Act of 2008 (HERA)Between July 2008 and December 31, 2010 the Federal HomeLoan Banks were authorized to provide credit enhancement totax-exempt non-housing bonds. This authority has since expired.However, letters of credit issued under this authority may beextended or amended.
Housing Eligible Projects:Owner-occupied Housing • Household income at or below 115% area median
income (AMI), adjusted for a four-person household.
Rental Housing• At least 51% of the units affordable to households
with incomes at or below 115% AMI, adjusted for a four-person household; or
• Affordability ratio allows up to 30% of monthly gross income for housing expense.
Commercial Eligible Projects:• Project located in census tract with median
income ≤ 100% AMI in urban areas and ≤ 115% in rural areas;
• Project that qualifies as a small business under Small Business Administration guidelines; or
• At least 51% of full-time equivalent employees orhouseholds served earn ≤ 100% of AMI in urbanareas and ≤ 115% of AMI in rural areas.
How to Get StartedWe can work with you to provide materials and partici-pate in presentations and other efforts with your cus-tomers to help them understand the benefits of workingwith FHLBC letters of credit.
Should you need more information about LCs to creditenhance bond financing, or have questions regardingpricing, please contact one of our product specialists:Jay Rutherford, 312-552-1285, [email protected],Chris Rothwell, 312-565-5776, [email protected], orsend an email to [email protected]. Alternatively, youcan contact your sales director.
www.fhlbc.com Federal Home Loan Bank of Chicago
Benefits to Members
The Federal Home Loan Bank of Chicago (FHLBC)offers irrevocable letters of credit (LCs) that providemembers a low-cost and efficient way to attract andsecure agreements with third parties.
Using a letter of credit from the FHLBC allows mem-bers to leverage our Aaa/AA+ rating at a competitiveprice in order to retain and grow their local customerrelationships. In addition, LCs:• Provide liquidity by serving as an alternative form of collateral;
• Help members manage month-to-month deposit fluctuations;
• Improve bond-related transaction costs;
• Allow smaller members to compete with larger, rated banks and grow fee income; and
• Provide project financing opportunities that support community economic development and affordable housing projects.
Members use LCs for a variety of purposes, including:• Residential housing finance;
• Community lending;
• Asset liability management; and
• Liquidity.
Types of Letters of Credit
The FHLBC offers standby/confirming letters of creditthat can be used to secure public unit deposits, provideperformance guarantees, and credit enhance tax-exemptor taxable bond financings. We also offer direct pay let-ters of credit in connection with bond financings.
Standby/Confirming: A standby or confirming LC is afinancial instrument issued by the FHLBC that providesrecourse in the event a member defaults under its con-tractual obligations with a third party. The FHLBC willissue a standby LC directly on behalf of a member’saccount with a third party or to confirm a member’sguarantee of its customer’s performance. The memberis first to pay under a draw request. The FHLBC letterof credit is drawn on in the event that the member doesnot perform.
Direct Pay: Under a direct pay LC, the FHLBC providesthe primary payment mechanism. The FHLBC makesthe principal and interest payments to satisfy the mem-ber’s obligations. The member reimburses the FHLBCunder the terms of a reimbursement agreement andthen seeks reimbursement from the borrower.
Getting Started is Easy
Completing the application is straightforward, and the FHLBC staff is available to guide you through the process. In addition, forms are available on ourmembers-only website, eBanking.
Letters of Credit • Credit Enhancement for Bonds• Performance Guarantees• Public Unit Deposits
Federal Home Loan Bank of Chicago
Standby LCs for Performance Guarantees
Does MasterCard, VISA, or American Express requirean LC to guarantee payments on your credit cardprocessing account? Do you need an LC from a ratedbank to stand behind your guarantee of a customer’slease payments or performance under a constructioncontract?
The FHLBC offers standby LCs issued directly onbehalf of a member’s account or to confirm a member’sguarantee of its customer’s performance.
LC guarantees may include:
• Credit card processing accounts;
• Construction projects;
• Insurance payments;
• Workers’ compensation and insurance premiums;
• Working capital guarantees;
• Lease payments; and
• State special deposit requirements for
insurance companies.
Credit Enhancement for Bond Financings
Your customer may need an LC from a rated bank to arrange financing for a housing or community eco-nomic development project with proceeds from a bondissuance. Members that are unrated, or that have lessthan an Aaa or AA+ rating, may retain their customerrelationships by requesting an FHLBC confirming/standby or direct pay LC, which will guarantee theprincipal and interest payments to bondholders andcredit enhance the bonds with its Aaa/AA+ rating.Direct pay LCs issued by the FHLBC also accommodatemulti-member participation structures.
The FHLBC offers support for taxable and tax-exemptbond financing for housing projects and for taxablebonds for community economic development activities.
Proceeds from the bond issuance can help finance a range of projects, including:
• Housing developments;
• Healthcare facilities;
• Schools and universities; and
• Manufacturing plants.
Members can benefit from discounted pricing on proj-ects eligible under our Community Investment CashAdvance (CICA) Program.All non-housing projects mustbe CICA-qualified in order to obtain an FHLBC LC.
How Insurance Companies Use LCs The FHLBC is registered with the NationalAssociation of Insurance Commissioners (NAIC).Insurance companies that are members of theFHLBC use standby LCs in a variety of situations,including:• As a security deposit for leasing space.• Workers’ compensation loss reserve activity.• State licensing requirements.• In court. If an insurance claim is filed in court and a judgment is rendered against the insur-ance company, the insurance company can post the judgment amount or an appeal bond in the form of an LC.
• Reinsurance. Insurance companies may syndicate their exposures, which may require tangible collateral to be pledged to the reinsurer. An LC can be used for this purpose.
How does the FHLBC creditenhancement work?• The FHLBC member works with the borrower and underwriters to determine project feasibility and terms of bond financing.
• In most cases, the FHLBC issues a confirming LC in support of a member’s LC, under which the FHLBC promises to make payments for the bene-fit of the bondholders if the member does not pay under its LC. Alternatively, the FHLBC also offers direct pay LCs under which the FHLBC provides the primary payment mechanism on the bonds.
• Bonds are issued with the FHLBC rating, which increases the marketability of the bonds and reduces the financing costs.
www.fhlbc.com Federal Home Loan Bank of Chicago
Standby LCs to Secure Public Unit Deposits
Your municipal clients provide a valuable deposit busi-ness. To retain your securities for liquidity and otherpurposes and to attract public unit deposits that exceedthe amount covered by FDIC insurance, you can use alow-cost FHLBC standby LC for public unit deposits(PUD LC) to collateralize a public entity’s deposits.
For public unit deposit accounts that frequently fluctu-ate, members can now request the Fluctuating BalancePUD LC for amounts of $10 million or more. TheFHLBC can issue Fluctuating Balance PUD LCs for the benefit of a single public unit depositor or to athird-party trustee as beneficiary for multiple publicunit depositors. Alternatively, the FHLBC can issuePUD LCs for one-month terms to manage fluctuations.
The PUD LC is acceptable collateral under both Illinoisand Wisconsin law, although the depositor’s legal counselmust confirm eligibility. The FHLBC’s Law Departmenthas produced a short document called “InformationRegarding Using FHLBC Letters of Credit to Back PublicUnit Deposits” that members can share with their depos-itors’ legal counsel to make understanding and execut-ing an LC as easy as possible.
Members can use a standby LC to collateralize depositsfrom many public entities, including:
• Local government: city, county, township;
• State government and state agencies;
• Transportation authorities;
• Housing authorities;
• Water reclamation districts; and
• Public school districts and community colleges.
Benefits to the Public EntityThe benefits of a PUD LC from the Federal HomeLoan Bank of Chicago to a public agency include:
• Immediate payout. In the unlikely event of a default, the FHLBC pays out under the LCimmediately; there is no delay with selling securities in the market to make payment.
• Convenient. The FHLBC can issue a standardPUD LC within 24 hours and, in many circum-stances, within several hours.
• Secure and irrevocable. The LC carries theFHLBC’s Aaa/AA+ rating.
For More Information
Learn more about letters of credit by contacting oneof our product specialists:
Jay Rutherford, 312-552-1285,[email protected]
Chris Rothwell, 312-565-5776, [email protected]
or send an email to [email protected]. Alternatively,you can contact your sales director.
www.fhlbc.com Federal Home Loan Bank of Chicago
LC General Terms and Conditions
All terms and conditions below are subject to reviewand change. Additional terms and conditions may apply.
Maximum Term: 10 years.
Maximum or Minimum: For most LCs, there is no maximum or minimum amount requirement.Fluctuating Balance PUD LCs are available in minimum amounts of $10 million.
Irrevocable: FHLBC letters of credit are irrevocable.
Collateral: FHLBC letters of credit must be fully collat-eralized at the time of issuance in the same manner asadvances. Refer to the Member Products and CreditPolicy.
Stock: There is no capital stock purchase requirementat issuance of a FHLBC letter of credit. In general, theFHLBC does not anticipate its standby letters of creditbeing drawn upon. In the event that a draw does occurunder a standby or direct pay letter of credit and themember does not immediately reimburse the FHLBCfor the draw, an advance will be made. Any requiredcapital stock purchases will be calculated at the time an advance is made.
Documentation: The member must complete an appli-cation and reimbursement agreement. If applicable, acopy of the member’s underlying letter of credit mustbe provided prior to the issuance of the FHLBC letterof credit. For credit enhancements of bond financings,additional documentation will be required prior toclosing.
CICA Eligibility: Discounted pricing is offered for hous-ing and community lending projects eligible under ourCommunity Investment Cash Advance (CICA) program.All community lending (non-housing) projects must beCICA-qualified in order to obtain an FHLBC letter ofcredit.
Fees: Fees are paid annually in advance, calculated on an actual/360 basis, for most FHLBC LCs. ForFluctuating Balance PUD LCs, a minimum fee on 50%of the amount of the LC is paid annually in advance,calculated on an actual/360 basis, with additional feesbased on the average daily balance of the depositaccounts as reported by the member paid quarterlyand at the expiration of the LC.
Additional fees may apply. Fees are assessed for draftson FHLBC letters of credit. Members incur the associat-ed legal and documentation costs for an FHLBC letter ofcredit to credit enhance a bond financing and any othernon-standard FHLBC letter of credit.
Renewal: FHLBC letters of credit must contain a specificexpiration date or be for a definite term. Evergreenprovisions where FHLBC has the option to renew arepermissible as long as there is a stated final maturitydate.
Transferable: FHLBC letters of credit are only transfer-able with prior written consent from the FHLBC.
Cancellation: LCs may be terminated prior to theirstated maturity upon written notification from theBeneficiary and receipt of the cancelled original letter of credit.
For additional information, please contact one of ourproduct specialists:Jay Rutherford, 312-552-1285, [email protected],Chris Rothwell, 312-565-5776, [email protected], orsend an email to [email protected]. Alternatively, youcan contact your sales director.
Appendix I: Sample VRDN Offerings w/FHLB “Wrap”
1. Esplanade Theaters $2,475,000 FHLB Dallas 30 year term S&P Rated AA+
2. Glen Eden Apartments $5,210,000 FHLB Des Moines15 year term Moody’s Rated Aaa
3. Ampla Health, a non-profit $7,265,000 FHLB San Francisco15 year term S&P Rated AA+
4. Louise S. McGhee School $7,000,000 FHLB Dallas30 year term S&P Rated AAA
NEW ISSUES RATING: MOODY’S INVESTORS SERVICE “Aaa/VMIG1”SERIES 2016B TAXABLE (See “RATING” herein)
In the opinion of Kennedy & Graven, Chartered, Bond Counsel to the Issuer, based on present federal and Minnesota laws, regulations, rulings, anddecisions (which excludes any pending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest on the Series 2016ABonds, except interest on the Series 2016A Bonds for any period during which the Series 2016A Bonds are held by a “substantial user” of the project to be refinancedwith the proceeds of the Series 2016A Bonds or a “related person” as those terms are employed in Section 103(b)(13) of the Internal Revenue Code of 1954, asamended, is excludable from gross income for federal income tax purposes and, to the same extent, is excludable from taxable net income of individuals, estates, andtrusts for State of Minnesota income tax purposes, and is not a preference item for purposes of computing the federal alternative minimum tax or the State of Minnesotaalternative minimum tax imposed on individuals, trusts, and estates. Such interest is taken into account in determining adjusted current earnings for the purpose ofcomputing the federal alternative minimum tax imposed on certain corporations and is subject to State of Minnesota franchise taxes on corporations (includingfinancial institutions) measured by income and the alternative minimum tax base. No opinion will be expressed by Bond Counsel regarding other federal or Minnesotatax consequences caused by the receipt or accrual of interest on the Series 2016A Bonds or arising with respect to ownership of the Bonds. Interest on the Series2016B Bonds is NOT tax exempt. See “TAX EXEMPTION AND COLLATERAL TAX MATTERS” in this Official Statement.
$2,390,000City of Eden Prairie, Minnesota
Variable Rate Demand MultifamilyHousing Revenue Refunding Bonds
(Eden Glen Apartments Project)Series 2016A
$2,820,000City of Eden Prairie, Minnesota
Taxable Variable Rate Demand MultifamilyHousing Revenue Bonds
(Eden Glen Apartments Project)Series 2016B
CUSIP: Series 2016A: 279540 MW5 Price:100% Due: Series 2016A: February 1, 2031Series 2016B: 279540 MX3 Price:100% Series 2016B: February 1, 2031
The Bonds will pay interest payable on the first Business Day of December, 2016 and monthly thereafter (so long as the Bonds bear interest at the Variable Rate)on the first Business Day of each month, at the Variable Rate described herein, determined by the Underwriter, as Remarketing Agent, on each Wednesday (or theimmediately preceding Business Day if Wednesday is not a Business Day) for the period commencing on the Thursday following such determination by theRemarketing Agent and ending on the following Wednesday. Principal is payable at maturity or at an earlier redemption at the designated office of U.S. Bank NationalAssociation, in Saint Paul, Minnesota, as trustee and paying agent (the “Trustee”). Bonds will be issued in the denominations of $100,000 or any greater amount in$5,000 multiples (except following redemption no more than one Bond may be in an amount less than $100,000), upon the terms and conditions set forth in theIndenture, as hereinafter defined. During the period that the Bonds bear interest at the Variable Rate, and upon certain terms and conditions, each Bondholder has theright to tender the Bonds for purchase to the Trustee upon seven (7) days notice.
The Bonds will satisfy the requirements of The Depository Trust Company (“DTC”) for the Bonds to be eligible for DTC services. The Bonds will be registeredunder a book entry system in the name of DTC or its nominees as described in the Indenture. The Bonds will not be distributed to the ultimate purchasers (See “THEBONDS - Book Entry System”).
The Bonds and the interest thereon are special, limited obligations of the City of Eden Prairie, Minnesota (the “Issuer”), payable solely from payments madepursuant to a Loan Agreement (the “Loan Agreement”) between the Issuer and Eden Investments, LLP, a Minnesota limited liability partnership (the “Borrower”), inamounts sufficient to pay, when due, the principal of, premium, if any, purchase price of, and interest on, the Bonds which Basic Payments are pledged and assigned tothe Trustee as provided in the Indenture.
Payment of the principal amount of each series of the Bonds and up to 50 days interest on each series of the Bonds at the rate of 10% per annum is securedinitially by an irrevocable, direct-pay letter of credit (the “Initial Letter of Credit”) issued by Bridgewater Bank,
a Minnesota banking corporation (the “Bank”), at the request of and for the account of the Borrower. Certain provisions of the Letter of Credit and certain informationwith respect to the Bank are set forth in this Official Statement.
Federal Home Loan Bank of Des Moines (the “Confirming Bank”) will issue its Irrevocable Confirming Letter of Credit (the “Confirming Letter of Credit”), tosecure payments on the Letter of Credit. Certain provisions of the Confirming Letter of Credit and certain information with respect to the Confirming Bank are set forthin this Official Statement.
NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE ISSUER, THE STATE OF MINNESOTA, OR ANY POLITICALSUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON, OR THE PURCHASE PRICEOF THE BONDS. THE BONDS DO NOT CONSTITUTE A DEBT OF THE ISSUER WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORYLIMITATION. THE BONDS ARE NOT A GENERAL OR MORAL OBLIGATION OF THE ISSUER, THE STATE OF MINNESOTA OR ANY POLITICALSUBDIVISION THEREOF.
Under certain circumstances, the interest rate on the Bonds may be converted from a Variable Rate to a Fixed Rate, effective on the Conversion Date. ThisOfficial Statement contains information relating to the Bonds prior to the Conversion Date. Holders or purchasers of the Bonds are not to rely on the information hereinwith respect to the terms or conditions of the Bonds after the Conversion Date.
The Bonds are subject to optional and mandatory redemption and optional and mandatory tender for purchase prior to their stated maturity at the prices, at thetimes and under the circumstances described herein.
The Bonds are offered subject to prior sale, when, as and if issued, subject to an opinion as to validity of the Bonds and tax exemption of the Series 2016A Bondsby Kennedy & Graven, Chartered, Minneapolis, Minnesota, as Bond Counsel, and certain other conditions. Certain legal matters will be reviewed for the Bank byMesserli & Kramer, P.A., Minneapolis, Minnesota and for the Confirming Bank by its General Counsel. Certain legal matters will be reviewed for the Underwriter byBarnes & Thornburg LLP, Minneapolis, Minnesota and for the Borrower by its counsel, Lindquist & Vennum LLP, Minneapolis, Minnesota. It is expected thatdelivery of the Bonds will be made at the designated office of the Trustee in Saint Paul, Minnesota, on or about November 14, 2016, against payment therefor.
DOUGHERTY & COMPANY LLC
The date of this Official Statement is November 7, 2016.
OFFICIAL STATEMENT DATED SEPTEMBER 29, 2016
NEW ISSUE BOOK-ENTRY ONLY RATINGS: S&P: “AA+/A-1+” (See “RATINGS” herein)
In the opinion of Quint & Thimmig LLP, Larkspur, California, Bond Counsel, interest on the Bonds is exempt from personal income taxation imposed by the State of California but is subject to all applicable federal taxation. See “TAX MATTERS” herein.
$7,265,000CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY
Taxable Variable Rate Demand Refunding Revenue Bonds(Ampla Health), Series 2016
Dated: Date of Delivery Due: October 1, 2031The bonds described herein (the “Bonds”) are issued by the California Health Facilities Financing Authority (the “Authority”) pursuant to the California Health Facilities Financing Authority Act constituting
Part 7.2 of Division 3 of Title 2 of the California Government Code, and the Indenture of Trust, dated as of June 1, 2016 (the “Indenture”), by and between the Authority and U.S. Bank National Association, as trustee (the “Trustee”). It is anticipated that the Bonds will be issued and delivered on the date set forth below in fully registered form and, if and when issued, will be registered in the name of Cede & Co., as the registered owner and
The Bonds are special, limited obligations of the Authority payable (except to the extent payable from certain amounts held by the Trustee under the Indenture, including the proceeds of the Bonds) solely from
redemption or upon acceleration, (b) regularly scheduled interest on the Bonds or payment of interest on a date established for the redemption or acceleration of the Bonds, and (c) the purchase price of Bonds tendered or
Established 1931San Francisco, California
_____________________________________________HONORABLE JOHN CHIANG
Treasurer of the State of CaliforniaAs Agent for Sale_____________________________________________
†
ance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds.
Appendix II: RayJay Weekly Commentary
Note:1. This week’s market pricing (highlighted)2. This week’s market size (highlighted)3. List of this week’s new issues4. Recent FHLB Wrapped Issues (highlighted)
RATES: SIFMA, LIBOR and Treasury Bills
INSTITUTIONAL USE ONLY
December 12, 2016
Bank Ratings Monitor
Tom Galvin 901.579.4226 [email protected]
Michael Mobley 901.579.4528 [email protected]
Amber Sayle 865.777.5847 [email protected]
PUBLIC FINANCE
This week Last week Last month Last YearWeekly VRDBs 0.59% 0.58% 0.57% 0.01%Taxable Weekly VRD 0.64% 0.62% 0.64% 0.30%2017 MMD-Early 0.67% 0.73% 0.58% 0.47%2017 MMD-Mid 0.79% 0.83% 0.63% 0.63%2017 MMD-Late 0.92% 0.94% 0.69% 0.75%T/E MMF assets $130.96 $130.09 $129.29 $249.52
*Source: Raymond James, MMD, iMoneyNet Report
Tax-Exempt Short-term Variable Rate Market
This week Last week Last Month Last Year SIFMA Index 0.57% 0.56% 0.55% 0.01%1M LIBOR 0.69% 0.65% 0.54% 0.33%SIFMA/1M LIBOR 83% 86% 101% 3%6M T-Bill 0.64% 0.61% 0.56% 0.53%1Yr T-Bill 0.85% 0.80% 0.72% 0.72%
*Source: Thompson, Bloomberg
Moody's S&P Fitch Trading Value Trading Value
Domestic Bank Current SIFMA SIFMA 1.00%
BB&T P-1/A1/Stable A-2/A/Stable F1/A+/Stable Flat Plus 2
Bank of America P-1/A1/Stable A-1/A/Pos F1/A+/Stable Plus 2 Plus 4
Bank of New York P-1/Aa2/Stable A-1+/Aa-/Stable F1+/Aa/Stable Flat Plus 1
CitiBank P-1/A1/Stable A-1/A/Pos F1/A+/Stable Plus 1 Plus 3
Fannie MAE P-1/AAA/Neg N.A. F1+/AAA/Neg Plus 1 Plus 2
FHLB P-1/AAA/Neg A-1+/AAA/Neg F1+/AAA/Neg Flat Plus 2
Freddie MAC P-1/AAA/Neg N.A. F1+/AAA/Neg Plus 1 Plus 2
JP Morgan P-1/Aa3/Stable A-1/A+/Stable F1+/AA-/Stable Plus 3 Plus 4
Northern Trust LOC P-1/A2/Stable A-1+/AA-/Stable F1+/AA-/Stable Plus 2 Plus 2
PNC Bank P-1/A2/Stable A-1/A/Stable F1/A+/Stable Flat Plus 2
TD Bank P-1/A1/Stable A-1+/AA-/Neg F1+/AA-/Stable Plus 1 Plus 2
US Bank P-1/A1/Stable A-1+/AA-/Stable F1+/Aa/Stable Flat Plus 2
Wells Fargo P-1/Aa2/Stable A-1/Aa-/Stable F1+/AA-/Stable Flat Plus 2
Foreign Bank
Bank of Nova Scotia P-1/Aa2/Neg A-1/A+/Stable F1+/AA-/Stable Plus 2 Plus 3
Bank of Montreal P-1 A-1/A/Stable F1+/AA- Plus 1 Plus 2
Landesbank P-1/A1/Stable A-1/A/Stable F+/A+/Stable Plus 2 Plus 4
Lloyds P-1/A2/Neg A-1/A/Stable F1/A/Stable Plus 1 Plus 4Mitsubishi/Union Bank(Domestic) P-1 Flat Plus 2
Royal Bank of Canada P-1/Aa3/Neg A-1+/AA-/Stable F1+/Aa/Stable Flat Plus 2
Sumitomo P-1/A1/Stable A-1/A/Stable F1/A-/Stable Flat Plus 2
0
0.2
0.4
0.6
0.8
1SIFMA vs 30-Day LIBOR
30-Day LIBOR
SIFMA
Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or the solicitation of an offer to sell or buy the securities herein mentioned. This firm and/or its affiliates and/or its shareholders and/or members of their families may have position in the securities mentioned and may make purchases and/or sales of these securities from time to time in the open market or otherwise. Opinions expressed are present opinions only and are subject to change without prior notice. Raymond James may also perform or seek to perform investment banking for entities referred herein. Intended for institutional clients only.
Have a great week!
Tom, Amber and Michael
The stock market continues its love affair with the new Republican administration and the bond market feels like the guy that got dumped at Christmas time. Tax Free Bond Funds lost another $2.2 billion and the 4 week net asset moving average is a negative $2.4 billion. Tax Free Money Funds received in $870.90 million and total assets have grown to $130.96 billion over the last month. The Federal Reserve meets this week and is highly expected to raise the Federal Funds Rate by 25 basis points to .75%. Bad news for the issuers and good news for the investors. SIFMA went from .56% to .57% and has performed rather well considering the technical factors of the market. 1MM LIBOR is now at .695% and will continue to trek higher during the week in anticipation of the Fed’s announcement. SIFMA will follow the lead of 1M LIBOR but at a slower pace. The bond markets will be most interested in the Fed’s 2017 interest rate outlook and have put the anticipated rate hike this week in the review mirror.
Variable Rate Transaction list as of 12/12/2016
Dated CUSIP Issuer LOC/SPA Expiration Size
11/17/2015 74442PBM6 Public Fin Authority WI (Ram Eufala Hospitality( Taxable) FHLB/USAmeri Bank 11/01/2016 $6,005,000
11/17/2015 613670DE5 Montgomery Cnty TN IDB (Hancock Tire Manufacturing) Taxable Kookmin Bank 11/19/2018 $150,000,000
12/03/2015 555538EZ6 Macon-Bibb Cnty GA IDA (Kumho Tire Inc Proj) Tax Exempt VRDN Series B Korea Dev Bank 12/02/2018 $60,000,000
12/03/2015 555538EX1 Macon-Bibb Cnty GA IDA (Kumho Tire Inc Proj) Taxable VRDN Series A Korea Dev Bank 12/02/2018 $100,000,000
12/08/2015 60416SMG2 Minnesota State Housing Finance Authority RBC (SPA) 1/02/2023 $35,000,000
12/08/2015 658909JW7 North Dakota Housing Finance Agency FHLB (SPA) 12/08/2020 $25,000,000
12/8/2015 64987BFD5 New York State Housing Finance Agency (42nd Street) Bank of China 12/8/2018 $80,000,000
1/13/2016 454898TS6 Indiana State Muni Power Agency US Bank 12/1/2020 24,225,000
1/14/2016 78764YCJ4 Saint Charles Co MO Public Water Supply District #2 US Bank 1/5/2019 17,800,000
1/21/2016 882723J67 Texas State Veterans Helaba SBPA 1/21/2021 250,000,000
2/18/2016 45471APK2 Indiana State Fin Auth Hosp Rev (Indiana Univ Health) B BMO LOC 12/18/2018 $50,000,000
2/18/2016 45471APJ5 Indiana State Fin Auth Hosp Rev (Indiana Univ Health) C BMO LOC 12/18/2018 $50,000,000
2/5/2016 130483DE7 CA St Muni Finance Auth Multi-Family Hsg (Cooper Square) A-1 FHLB/East West Bank 2/4/2019 $3,000,000
2/11/2016 01728A2Y1 Allegheny Cnty PA Hospital Auth Concordia Lutheran BMO LOC 2/8/2019 $40,250,000
2/26/2016 64971WE63 New York City Transitional Finance Auth Future Tax JP Morgan (SPA) 2/26/2019 $150,000,000
3/03/2016 20775CEB6 Connecticut State Housing Finance Authority RBC (SPA) 3/02/2021 $40,000,000
3/30/2016 462467RA1 Iowa State Finance Auth Non Ace Mtge Backed Sec Proj FHLB 3/30/2018 $20,000,000
3/10/2016 463612HJ3 Irvine CA USD Special Tax US Bank 3/10/2019 $41,495,000
3/30/2016 7131767S8 Peoria IL Variable GO Bonds A BMO SPA 4/1/2019 $9,710,000
4/5/2016 64987BKN7 New York State Housing Landesbank Hessen 3/26/2025 $140,000,000
4/6/2016 852636BA6 Stamford CT Housing Authority Fannie Mae 9/20/2026 $31,680,000
4/27/2016 06964CAC8 Bartow Co GA Dev Authority – Special Alloys Comerica 4/15/2021 $15,000,000
4/13/2016 54468LAA3 Los Angeles CA Cap Asset Leasing Corp US Bank 4/12/2019 $100,000,000
4/27/2016 97689QCF1 WI St Housing & Eco Dev Auth Home Owner Rev None Ace RBC (SPA) 4/26/2023 $60,000,000
4/27/2016 63968MMY2 NE St Investment Fin Auth Single Fam Hsg Revs FHLB 3/1/2018 $30,000,000
4/20/2016 54677BRR7 NJ ST Econ Dev Auth Jewish Comm Center Palisades Proj Valley National Bank 4/20/2021 $12,000,000
4/28/2016 691395P35 Oxford AL GO Warrants Self liquidity 9/1/2041 $12,745,000
5/5/2016 65588TAQ2 Norfolk VA Econ Dev Auth Hosp Facs Sentara Healthcare Sentara Healthcare 11/1/2034 $98,835,000
5/3/2016 469400BW4 Jacksonville FL Healthcare Fac Mayo Clinic-CP Mayo Clinic 11/15/2047 $125,000,000
5/3/2016 771902GY3 Rochester MN Healthcare Fac Mayo Clinic Mayo Clinic 11/15/2047 $75,000,000
Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or the solicitation of an offer to sell or buy the securities herein mentioned. This firm and/or its affiliates and/or its shareholders and/or members of their families may have position in the securities mentioned and may make purchases and/or sales of these securities from time to time in the open market or otherwise. Opinions expressed are present opinions only and are subject to change without prior notice. Raymond James may also perform or seek to perform investment banking for entities referred herein. Intended for institutional clients only.
Dated CUSIP Issuer LOC/SPA Expiration Size
5/26/2016 93978TTF6 Washington State Hsg Finance Commission State Street (SPA) 6/15/2020 $7,500,000
5/10/2016 13034PXZ5 CA State Housing Finance Agency (Ortiz Plaza Apts) Exchange Bank (SPA) 10/20/2017 $2,700,000
5/10/2016 74442PCE3 WI Public Finance Authority (St. Johns College) St Johns Collee 10/01/2045 $20,275,000
5/11/2016 303823LR7 Fairfax County VA Healthcare IDA (Inova Health) Series C Inova Healthcare 5/15/2042 $99,685,000
5/12/2016 19648A5S0 Colorado ST Health Facilities Auth (SCL Health) B&D Wells Fargo (SPA) 5/10/2019 $110,990,000
5/12/2016 19648A5T8 Colorado ST Health Facilities Auth (SCL Health) A&C Wells Fargo (SPA) 5/10/2019 $110,980.000
5/11/2016 59447TJC8 MI ST Fin Auth (Ascension Healthcare) E-2 & E-3 Ascension Healthcare 11/15/2047 $100,000,000
5/19/2016 196476CQ6 CO ST Housing & Finance Auth (ACME Manufacturing) UMB Bank 5/1/2021 $8,480,000
5/18/2016 940865AW8 Wahhoe Cnty, NV Water Facs (Sierra Pacific Power Comp) Sierra Pacific Power 3/1/2036 $80,000,000
5/31/2016 686087UF2 Oregon ST Hsg & Comm Svcs Single Family Mtge State Street (SPA) 1/1/2033 $28,140,000
5/24/2016 6498BMC9 New York State Hsg Finance Agency (19 India St) JP Morgan 5/24/2020 $37,000,000
5/24/2016 445199AN2 Humbolt, NV Pollution Control Rev (Sierra Pacific Power) Sierra Pacific Power 10/1/2029 $29,750,000
5/24/2016 940865AZ1 Washoe Cnty, NV Water Facs (Sierra Pacific Power Comp) Sierra Pacific Power 3/1/2036 $75,000,000
5/24/2016 940865BA5 Washoe Cnty, NV Water Facs (Sierra Pacific Power Comp) Sierra Pacific Power 3/1/2036 $20,000,000
5/26/2016 64987BML9 NY State Housing Fin Agency (625 W 57th St) Taxable Bank of New York 10/16/2018 $107,000,000
5/25/2016 67756QPP6 Ohio St Hsg Fin Agency (Series E thru J) FHLB 3/1/2017 $111,040,000
5/26/2016 61370DE5 Montgomery Cnty TN IDB (Hancock Tire Man) Taxable Kookmin Bank 5/24/2019 $80,000,000
6/1/2016 717883RR5 Philadelphia PA School District B of A, PNC 5/31/2018 $199,240,000
5/26/2016 59335QAA2 Miami Dade Co FL Water & Sewer Comm Paper Barclays 5/23/2019 $200,000,000
6/8/2016 414009KS8 Harris Cnty TX Cultural Edu Fac (Hermann Memorial Health) B-E Hermann Health 6/1/2046 $326,305,000
6/3/2016 54472LAC3 Los Angeles Cnty CA Met Trans Sales Tax Union Bank/SMBC 3/7/2019 $25,500,000
6/10/2016 57584XNP2 MA ST Dev Fin Agency (Cil Realty of Mass) M&T Bank 6/10/2019 $21,170,000
6/15/2016 751120EA0 Raleigh NC Limited Obligation Variable Series A PNC Bank (SPA) 5/31/2019 $30,955,000
6/14/2016 20772JZ39 Connecticut State General Obligation Bank of America 6/13/2019 $300,000,000
7/13/2016 56052FEP6 Maine St Housing Auth (AMT) State Street (SPA) 11/10/2020 $28,000,000
7/06/2016 45129YF76 Idaho St Housing & Finance (AMT&Taxable) Barclays SPA 7/6/2017 $51,920,000
7/13/2016 64987BNZ7 NY State Housing Agency A&B Bank of China 6/2/2019 $113,300,000
7/14/2016 20775CGE8 Connecticut St Housing Finance Auth C-4 RBC (SPA) 7/12/2019 $23,465,000
7/11/2016 917393CC2 Utah County UT Hospital Rev (IHC Health Services) US Bank (SPA) 7/12/2016 $60,000,000
7/11/2016 917393CE8 Utah County UT Hospital Rev (IHC Health Services) JP Morgan (SPA) 7/12/2016 $40,000,000
Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or the solicitation of an offer to sell or buy the securities herein mentioned. This firm and/or its affiliates and/or its shareholders and/or members of their families may have position in the securities mentioned and may make purchases and/or sales of these securities from time to time in the open market or otherwise. Opinions expressed are present opinions only and are subject to change without prior notice. Raymond James may also perform or seek to perform investment banking for entities referred herein. Intended for institutional clients only.
7/11/2016 917393BK5 Utah County UT Hospital Rev (IHC Health Services) BMO (SPA) 7/12/2019 $100,000,000
7/21/2016 649883P41 NY State Housing Agency Homeowner Mtge (AMT) Wells Fargo (SPA) 8/27/2019 $50,000,000
8/3/2016 64987BQJ0 NY State Housing Agency (Manhattan W Rsdl) Bank of China 12/18/2018 $130,000,000
8/4/2016 13080SMY7 Cal Statewide Comm Dev Auth (Pacific Collegiate Foundation) Comerica 9/1/2023 $6,750,000
8/18/2016 64966MGC7 New York NY Landesbank Hessen 8/1/2021 $81,000,000 8/18/2016 64966MFY0 New York NY Citibank 8/16/2019 $200,000,000
8/25/2016 13034AMC1 CA ST Infrastructure (Capital Corrugated) Series A & B Comerica 8/25/2021 $8,000,000
8/30/2016 59465M2E4 MI ST Housing Dev Auth Barclays SPA 3/6/2017 $61,300,000
8/30/2016 59465M2G9 MI ST Housing Dev Auth Bank of America SPA 3/6/2017 $55,220,000 8/25/2016 20775CKN3 CT ST Housing Fin Auth Landesbank Hessen 8/24/2021 $44,000,000 8/31/2016 940157J27 Washington MD Suburban Sanitation District State Street (SPA) 8/28/2019 $52,500,000
8/31/2016 940157J43 Washington MS Suburban Sanitation District TD Bank (SPA) 8/28/2019 $42,500,000
9/1/2016 46246WAD8 Iowa ST Fin Auth Pollution Control (Mid-American Energy) Mid-America 9/1/2036 $33,400,000
8/31/2016 613520LE3 Montgomery Co OH Hospital Revenue (Premier Health) Barclays 8/29/2020 $144,930,000
9/15/2016 91514AEZ4 University of Texas Variable Rate Rev Bonds (Taxable) Univ of Texas 8/1/2042 $125,000,000 9/20/2016 59266TMQ1 Metro Water District of Southern CA Landesbank Hessen 9/19/2019 $103,670,000
9/27/2016 649878BPE2 New York State Housing Wells Fargo 10/30/2018 $71,000,000 9/15/2016 896224AY8 Trimble Co KY Pollution Control (Louisville Gas & Electric) Self Liquidity 5/15/2046 $125,000,000 9/22/2016 64987BPC6 New York State Housing M&T Bank 11/25/2018 $35,000,000
10/6/2016 64972GMJ0 NYC Muni Water State Street (SPA) 10/5/2021 $200,000,000
10/13/2016 13032UGQ5 California Health Facilities (Ampla Health) Taxable FHLB Wrap 10/12/2018 $7,265,000
10/25/2016 462467RZ6 Iowa State Fin Auth Single Family FHLB 10/25/2018 $15,000,000 10/25/2016 16761KAA8 Chicago O’Hare Int’l Airport Commercial Paper Barclays 9/27/2019 $360,000,000 10/26/2016 67759HJD7 Ohio State Special Obs Capital Lease Adult Correctional Building Self-liquidity 10/1/2036 $64,300,000 10/27/2016 90068FAR7 Tuscaloosa Co AL IDA Hunt Refining Project – Re-Offer JP Morgan 10/27/2017 $175,000,000
11/15/2016 20775CLS1 CT ST Housing Fin Auth Helaba SPA 11/12/2021 $50,000,000
11/10/2016 45204EPA0 Illinois St Finance Auth (Carle Foundation) Taxable JPM LOC 8/5/2019 $50,000,000
11/14/2016 279540MW5 Eden Prairie MN Multifamily (Eden Glen Aots) FHLB Wrap 11/14/2017 $5,210,000 11/30/2016 79765PDJ9 San Francisco Multifamiily Housing Taxable Bank of China 11/30/2020 $120,030,000 11/30/2016 63968MPB9 NE ST Investment Finance Auth Single Family Housing Revs FHLB 3/1/2018 $28,990,000 12/2/2016 52349KBQ8 Lee County Fl IDA (Florida Power & Light) AMT Self-Liquidity 12/1/2046 $30,000,000 12/8/2016 46245EAY3 Iowa State Fin Auth (MidAmerican Energy) Self-liquidity 12/1/2046 $30,000,000 12/8/2016 605279MB1 MS State Business Fin Corp (Southern Motion Inc) Taxable FHLB wrap 12/7/2021 $11,000,000 12/15/2016 649883T39 New York St Mtg Agency Homeowner Mtg Rev JP Morgan SPA 5/13/2019 $29,345,000
Appendix III: Sample VRDN Closing DocumentsLouise S. McGhee School $7,000,000
List of Closing Documents
Appendix IV: Sample VRDN Offering MemorandumEsplanade Theaters $2,475,000
Including:1. Letter of Credit2. Confirming Letter of Credit (FHLB Dallas)3. Trust Indenture4. Commercial Reimbursement Note