Exeter Township School District Refinancing Plan June 20, 2017 Prepared by: Jamie Schlesinger Director & Wes Hall Senior Analyst PFM Financial Advisors LLC 2533 Yellow Springs Road Malvern, PA 19355 610.647.5487 (P) 610.647.2467 (F) www.pfm.com
MUNICIPAL MARKET UPDATE June 15, 2017 MMD YIELD CURVE The MMD Yield Curve is a high grade municipal yield curve published daily by Municipal Market Data. It is one of the most commonly used benchmarks in municipal finance. The yields within the curve reflect the current yields for each maturity year at which bondholders would be likely to sell high quality (AAA rated) general obligation backed bonds. The yield curve is typically influenced by new issuances in the primary market as well as post ‐ issuance trading in the secondary market. Municipal bonds typically trade at a "spread to MMD", meaning the difference between the yield in a specific year of a bond issue and the respective yield in the MMD Yield Curve. While these spreads vary over time, they can be a meaningful and powerful tool in trying to compare relative yield levels in a volatile interest rate environment. HISTORICAL MMD CURVE ILLUSTRATION ‐ SINCE JANUARY 1, 2007 7.00 6.00 5.00 Yield (%) 4.00 3.00 2.00 1.00 Range Average Current 0.00 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year Maturity Year SPOT ANALYSIS ‐ 10 YEAR MMD ‐ SINCE JANUARY 1, 2007 Since 1/1/2007 Amount Date 4.60 Min 1.290 6/27/2016 Max 4.860 10/15/2008 4.10 Average 2.614 n/a Yield (%) Current 1.840 6/15/2017 3.60 3.10 2.60 2.10 1.60 1.10 1/1/07 1/1/08 1/1/09 1/1/10 1/1/11 1/1/12 1/1/13 1/1/14 1/1/15 1/1/16 1/1/17 PFM Financial Advisors LLC 6/15/2017 1
EXETER TOWNSHIP SCHOOL DISTRICT SUMMARY OF OUTSTANDING INDEBTEDNESS A B Debt Service Requirements 1 2 3 4 5 6 7 8 9 10 11 12 Fiscal CABS* G.O. Bonds LTd Tax Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Note G.O. Bonds G.O. Bonds Total Year Series of Series of Series of Series A of Series B of Series of Series of Series of Series A of Series B of Debt Ended 1994 2011 2012 2012 2012 2013 2014 2015 2015 2015 Service 6/30/2018 3,800,000 903,646 531,608 756,750 551,470 265,265 1,102,041 800,010 209,145 100,300 9,020,235 6/30/2019 3,800,000 900,776 537,958 756,750 553,330 264,605 1,091,241 803,615 306,970 100,200 9,115,446 6/30/2020 906,276 1,374,645 756,750 3,043,241 268,505 1,007,391 798,092 307,670 100,100 8,562,671 6/30/2021 898,769 1,373,245 2,876,750 930,684 267,305 991,773 806,407 303,820 100,000 8,548,752 6/30/2022 899,894 5,981,950 266,105 758,765 306,020 124,650 8,337,384 6/30/2023 898,969 5,979,550 264,905 764,725 303,720 158,700 8,370,569 6/30/2024 896,113 2,978,750 3,268,705 768,525 301,420 157,400 8,370,913 6/30/2025 896,663 189,150 6,061,275 776,025 304,070 156,100 8,383,283 6/30/2026 899,363 132,350 2,002,013 1,573,820 4,065,225 8,672,770 6/30/2027 1,437,200 115,250 7,112,385 8,664,835 6/30/2028 3,017,900 2,555,025 5,572,925 TOTAL 7,600,000 8,100,468 3,817,455 24,863,850 5,078,726 10,926,670 11,932,774 3,208,124 11,029,040 5,062,675 91,619,781 Local Effort Requirements 13 14 15 16 17 18 19 20 21 22 23 24 Fiscal CABS* G.O. Bonds LTd Tax Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Note G.O. Bonds G.O. Bonds Total Year Series of Series of Series of Series A of Series B of Series of Series of Series of Series A of Series B of Local Ended 1994 2011 2012 2012 2012 2013 2014 2015 2015 2015 Effort 6/30/2018 2,926,587 792,084 439,055 713,792 551,470 249,650 1,035,670 693,258 195,671 93,855 7,691,092 6/30/2019 2,926,587 789,569 444,299 713,792 553,330 249,029 1,025,520 696,382 287,194 93,762 7,779,464 6/30/2020 794,389 1,135,320 713,792 3,043,241 252,699 946,720 691,596 287,849 93,668 7,959,275 6/30/2021 787,809 1,134,163 2,713,446 930,684 251,570 932,042 698,801 284,247 93,575 7,826,337 6/30/2022 788,795 5,642,374 250,441 713,068 286,305 116,641 7,797,624 6/30/2023 787,984 5,640,111 249,311 718,669 284,154 148,503 7,828,732 6/30/2024 785,481 2,809,656 3,076,293 722,240 282,002 147,287 7,822,958 6/30/2025 785,963 178,413 5,704,478 729,288 284,481 146,070 7,828,693 6/30/2026 788,329 124,837 1,881,439 1,472,430 3,804,024 8,071,060 6/30/2027 1,355,615 108,309 6,654,187 8,118,111 6/30/2028 2,846,584 2,401,146 5,247,730 TOTAL 5,853,173 7,100,403 3,152,837 23,452,411 5,078,726 10,283,472 11,214,110 2,780,037 10,318,521 4,737,386 83,971,075 1,652,582 7,035,000 3,595,000 19,995,000 4,715,000 9,340,000 9,540,000 3,123,000 9,235,000 4,265,000 72,495,582 Principal **: PE%: 40.53% 21.77% 30.70% 10.01% 0.00% 10.38% 10.62% 23.53% 11.36% 11.33% PE% Status: Perm. Perm Perm Perm Perm Perm Perm Perm Perm Perm AR% (16-17): 56.71% 56.71% 56.71% 56.71% 56.71% 56.71% 56.71% 56.71% 56.71% 56.71% Call Date: Noncallable 11/15/2017 11/15/2017 11/15/2020 Noncallable 5/15/2018 5/15/2019 Anytime 3/1/2020 3/1/2020 New Money, Adv Ref 2009A, Adv Ref 2003, Cur Ref 2009A Cur Ref Portion Cur Ref Portion Purpose: Adv Ref 1992, Adv Ref 2006 Cur Ref 2007 Swap Term Adv Ref 2003 2009C, 2010, Swap Term & 2009B Bonds 2010 2010 1993 New Money * Value at Maturity ** Outstanding as of 6/15/2017 ***Vo-Tech payments not included PFM Financial Advisors LLC. 6/15/2017 2
EXETER TOWNSHIP SCHOOL DISTRICT SUMMARY OF NEW MONEY OPTIONS 1 2 3 4 BANK LOAN BOND ISSUE OPTION 1A OPTION 1B OPTION 2A OPTION 2B Principal $4,995,000 $4,995,000 $5,820,000 $5,820,000 September 2017 September 2017 September 2017 September 2017 Settlement Principal Payment May 15 September 1 May 15 September 1 Dates Est. Savings $89,773 $158,526 $176,050 $266,529 5 6 7 8 9 Fiscal Estimated Estimated Estimated Estimated Year Local Effort Local Effort Local Effort Local Effort Ending Savings Savings Savings Savings 6/30/2018 56,407 77,497 83,295 103,864 6/30/2019 22,189 22,199 49,876 55,679 6/30/2020 358 22,220 36,784 90,395 6/30/2021 18 27,403 13 5,100 6/30/2022 457 787 2,671 3,214 6/30/2023 368 184 (4) 4,766 6/30/2024 709 874 1,023 1,189 6/30/2025 1,734 551 1,541 1,605 6/30/2026 1,532 812 851 717 6/30/2027 6/30/2028 6/30/2029 6/30/2030 TOTAL $83,773 $152,526 $176,050 $266,529 $6,000 $6,000 $0 $0 Paying Agent Savings: Combined Savings: $89,773 $158,526 $176,050 $266,529 PFM Financial Advisors LLC 6/15/2017 3
EXETER TOWNSHIP SCHOOL DISTRICT Schedule for 2017 Financing April 2017 May 2017 June 2017 S M T W T F S S M T W T F S S M T W T F S 1 1 2 3 4 5 6 1 2 3 2 3 4 5 6 7 8 7 8 9 10 11 12 13 4 5 6 7 8 9 10 9 10 11 12 13 14 15 14 15 16 17 18 19 20 11 12 13 14 15 16 17 16 17 18 19 20 21 22 21 22 23 24 25 26 27 18 19 20 21 22 23 24 23/30 24 25 26 27 28 29 28 29 30 31 25 26 27 28 29 30 July 2017 August 2017 September 2017 S M T W T F S S M T W T F S S M T W T F S 1 1 2 3 4 5 1 2 2 3 4 5 6 7 8 6 7 8 9 10 11 12 3 4 5 6 7 8 9 9 10 11 12 13 14 15 13 14 15 16 17 18 19 10 11 12 13 14 15 16 16 17 18 19 20 21 22 20 21 22 23 24 25 26 17 18 19 20 21 22 23 23/30 24/31 25 26 27 28 29 27 28 29 30 31 24 25 26 27 28 29 30 ALTERNATIVE 1 ALTERNATIVE 2 Bank Loan Bond Issue Discussion with Administration Regarding Capital Projects and Potential Refinancing Financing April/May 2017 Discuss Alternatives/Authorization to Proceed with Dual Track Process June 20th Gather Financial Statements and Budget from PFM Begins to Draft Preliminary Official Statement Week of June 19th District Request for Information for Preliminary Official Send RFPs to Local and Regional Banks Week of June 19th/26th Statement Bank Proposals Due July 14th District Meeting to Discuss Bank Proposals/Review Comparison vs Bond Issue/Decision to Proceed with July 18th Bank Loan or Bond Issue Rating Call End of July Rating Finalized/Preliminary Official Statement Early August Completed/Invitation to Bid Posted Pre-Advertisement for Resolution Week of August 7th District Meeting to Approve Parameters Resolution for Bond Issue or Bank Loan August 15th Competitive Bond Sale Week of August 14th Post-Advertisement for Resolution Mid/End August Settlement Mid September 4
Bank Loan PFM Financial Advisors LLC 5
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