Financing Results for Pacifica San Juan CFDs'

July 25, 2018 CUSD BOT Meeting Agenda Item #58 FINANCING RESULTS FOR THE PACIFICA SAN JUAN COMMUNITY FACILITIES DISTRICT

Board Agenda page 1017

More Information

This is an Information/Discussion Item only. No action will be taken by the Board

Result's on Financing for Pacifica San Juan CFD 98-1A and 98-1B

Negotiated Sale with Hilltop Securities on May 10, 2018.
Interest Rate 3.8%

40% of Bonds were unsold at proposed interest rates.

Options:

(1) Increase Interest Rates to entice more sales.

(2) Hilltop underwrites all unsold bonds- Hilltop assumes risk that interest rates will go up.

• Place of Sale: California
• Type of Security: CFD Bonds
• Tax Exempt
• Date of Sale April 10, 2018 - May 9, 2018 (May 10, 2018)
• AV- to - Lien Ratio: 8:1 to 16:1

Similar Sales:

• City of Lake Elsinore CFD 2003-2
• Jurpa Community Services District CFD 48
• Jurupa Unified School District CFD 7
• Jurupa Unified School District CFD 8
• Murrieta Valley Unified School District

Bond Debt Service is Repaid over Time with CFD Tax Revenue

• 110% Coverage Ratio
• Escalation Rate 2%
• CFD 98-1B term is 30 years
• CFD 98-1A to be retired by 2043-44

98-1A

• Bond Issuance Rate $8,670,000
• Up-front Costs $233,919
• Debt Service Reserves $683,855
• Capitalized Interest Fund $171,841
• Premium Discount $153,717
• Mitigation Funds $7,426,668
• Allocation to District $3,713,384
• Allocation to City $3,713,384

*Note: Upfront costs include underwriter's discount, bond counsel, disclosure counsel, general counsel, financial advisor, special tax consultant, fiscal agent, developer reimbursement, and misc. expenses.
98-1B

• Bond Issuance Rate $4,830,000
• Up-front Costs $288,626
• Debt Service Reserves $351,995
• Capitalized Interest Fund $111,333
• Premium/Discount $119,582
• Mitigation Funds $3,959,465
• Allocation to District $1,979,282
• Allocation to City $1,979,282

*Note: Upfront costs include underwriter's discount, bond counsel, disclosure counsel, general counsel, financial advisor, special tax consultant, fiscal agent, developer reimbursement, and misc. expenses.

Total Allocation CFD 98-1A and 98-1B $5.7 million to City of San Juan Capistrano and $5.7 million to CUSD