HomeMy WebLinkAboutRESPONSE - RFP - 7197 LEASE PURCHASE FINANCING 2011PinnaclePnblicFinance®
A BANKU NITED COMPANY
January 25, 2011
VIA Federal Express
James R. Hume
CPPO, Senior Buyer
City of Fort Collins
215 N. Mason Street, 2nd Floor
Fort Collins, CO 80522
RE: RFP 7197 Lease Purchase Financing 2011
Dear Mr. Hume;
Pinnacle Public Finance, a BankUnited Company, is pleased to respond to your financing request.
Corporate Overview: Pinnacle Public Finance, a BankUnited company, is a market leader in providing
tax-exempt financing directly to its state and local government clients and through its vendor programs
and alliances. We are a full -service municipal finance organization with origination, underwriting,
servicing, and syndication capabilities.
With more than $6 billion in financing and transactional experience in every state in the U.S., our team has
the knowledge and the resources to structure complex programs that require innovative, flexible financing
solutions.
In October 2010, BankUnited acquired the municipal finance business from Koch Financial and now
operate under the name Pinnacle Public Finance.
Our proposed terms and conditions are as follows:
Lessor: Pinnacle Public Finance, Inc. ("PPF")
Lessee: City of Fort Collins, CO ("City")
Issue Type: Municipal Lease/Purchase Agreement subject to annual appropriations
Master Lease Term: Up to Five Years
Estimated Annual
Amount Financed: $300,000 to $1,500,000
Equipment: As stated in the RFP; please note that PPF will not finance new and used Parks
and Golf Course maintenance equipment on a standalone schedule. In order to
finance the maintenance equipment, PPF will require other assets to be included in
the schedule or have that schedule cross -collateralized with another schedule.
Documentation: PPF has accepted the terms and conditions of the City's Standard Master Lease
Agreement "as is". Upon award PPF will review the City's Escrow Agreement and
Instructions (Exhibit D)
8377 E. Hartford Drive, Suite 115, Scottsdale, AZ 85255
Phone 480.419.4800 1 Toll Free 1.866.545.2327
City of Fort Collins, CO
January 25, 201 1
Page 2 of 3
General Lease
Schedule Procedures: Agreed as stated in RFP
Interest Rate Proposal:
• Lease Agreement Date:
• Lease Funding Date:
• Principal Amount:
• Proposed Interest Rate:
• Quarterly Payments:
Service Representatives:
March 29, 2011
March 29, 2011
$500,000
2.45%
$26,638.89 (1 ,t Payment Due
Bruce Block
Vice President, Direct Markets and Syndication
(P) 480-419-3634
Email: bblock@ppf-inc.com
Cathy Jimenez
SVP, Operations
(P) 480-585-3789
Email: CJimenez@ppf-inc.com
Neal Hoffman
VP, Underwriting and Compliance
(P) 480-419-3638
Email: nhoffman@ppf-inc.com
-6/29/2011)
Fees/Closing Costs: None other than those listed herein, however the City will be responsible for any
fees or expenses with respect to their (i) issuing costs, if any, (ii) City's legal
counsel, if any or (iii) title and registration fees. PPF is willing to finance any of
the City's expenses related to closing the transaction.
This proposal is subject to final credit approval. Please feel free to call me at 480419-3634 with any
questions or further clarification.
Thank you for the opportunity to present this proposal.
Sincerely,
&.�-Z-�6 01-rl
Bruce Block
Vice President - Syndication & Direct Markets
City of Fort Collins, CO
January 25, 2011
Page 3 of 3
5 Year Term
Totals:
Amortization Schedule
$532,777.89 $32,777.89 $500,000.00 Rate 2.450%
Payment
Payment
Outstanding
Pmt #
Date
Amount
Interest
Principal
Balance
3/29/201 1
$500,000.00
1
6/29/2011
$26,638.89
$3,062.50
$23,576.39
$476,423.61
2
9/29/2011
$26,638.89
$2,918.09
$23,720.80
$452,702.81
3
12/29/2011
$26,638.89
$2,772.80
$23,866.09
$428,836.72
4
3/29/2012
$26,638.89
$2,626.62
$24,012.27
$404,824.45
5
6/29/2012
$26,638.89
$2,479.55
$24,159.34
$380,665.10
6
9/29/2012
$26,638.89
$2,331.57
$24,307.32
$356,357.78
7
12/29/2012
$26,638.89
$2,182.69
$24,456.20
$331,901.58
8
3/29/2013
$26,638.89
$2,032.90
$24,606.00
$307,295.58
9
6/29/2013
$26,638.89
$1,882.19
$24,756.71
$282,538.87
10
9/29/2013
$26,638.89
$1,730.55
$24,908.34
$257,630.53
11
12/29/2013
$26,638.89
$1,577.99
$25,060.91
$232,569.62
12
3/29/2014
$26,638.89
$1,424.49
$25,214.41
$207,355.21
13
6/29/2014
$26,638.89
$1,270.05
$25,368.84
$181,986.37
14
9/29/2014
$26,638.89
$1,114.67
$25,524.23
$156,462.14
15
12/29/2014
$26,638.89
$958.33
$25,680.56
$130,781.58
16
3/29/2015
$26,638.89
$801.04
$25,837.86
$104,943.72
17
6/29/2015
$26,638.89
$642.78
$25,996.11
$78,947.61
18
9/29/2015
$26,638.89
$483.55
$26,155.34
$52,792.27
19
12/29/2015
$26,638.89
$323.35
$26,315.54
$26,476.72
20
3/29/2016
$26,638.89
$162.17
$26,476.72
-$0.00
SECTION 2.0 VENDOR'S RESPONSE - RFP # 7197, Lease Purchase Financing 2011
The City of Fort Collins does not anticipate the issuance of long-term, tax-exempt obligations
exceeding $10,000,000 in 2011. Therefore, this agreement will be considered bank qualified.
1. THE CITY OF FORT COLLL XS LEASE -PURCHASE AGREEMENT.
Acceptable? Yes v No _
(If your response is "No", please explain on a separate sheet.)
The City will consider suggestions for changes in the agreement if those changes are minor in
nature, legally required, or which reflect current industry practice.
2. COMPANY INFORMATION.
Provide requested information on a separate sheet.
3. SERVICE REPRESENTATIVES: Include name, title, phone number and email address.
List representatives on a separate sheet
4. REFERENCES: Include entity name, contact person, email address and phone number.
List references on separate sheet
5. INTEREST RATE PROPOSAL
2011x Lease: sample only for proposal purposes
Lease agreement date, March 29, 2011.
Lease funding date, not later than March 29, 2011.
Principal Amount: $500,000 (estimated)
Type of Equipment financed: New Police vehicles, New Streets maintenance equipment, new and
used Parks and Golf Course maintenance equipment. All vehicles and equipment have a service
life exceeding five years.
Term: Five (5) years, quarterly payments, in arrears
Proposed interest rate: a 'ys'/j % (simple)
Quarterly payments: $6 bt9tOGO, $ 1 First payment due —June 29, 2011.
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