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Bid Title: Proposals for a Bank Loan
Category: Purchasing
Status: Closed
Bid Recipient: via email to: Dave Pedri – david.pedri@luzernecounty.org CC: Scott Shearer – shearers@pfm.com Meliss

Description:
August 2, 2019
Requests for Proposals
County of Luzerne, Pennsylvania

$35,140,000* General Obligation Note, Series of 2019 (Tax-Exempt, Non-Bank Qualified)
The County of Luzerne, Pennsylvania (the “County”), is seeking proposals for a bank loan in the approximate principal amount of $35,140,000, the proceeds of which will be used towards refunding certain debt of the County (approx. $12.1m) and providing new money for capital needs of the County (approx. $23m) . Depending on the interest rates received, the County reserves the right to reject the proposals related to the General Obligation Note, Series of 2019. The County's 2016, 2017 and 2018 Audited Financial Statements as well as its 2019 Budget will be provided which will include relevant financial information.

Type: Bank Loan
Principal Amount: Approximately $35,140,000
Purpose: Currently refunding County’s Outstanding General Obligation Bond Series E of 2008, Series of 2009, General Obligation Notes, Series D of 2008, Series of 2009; provide for the new money needs of the county including but not limited to 911 system infrastructure and equipment, voting machines, and to pay the costs of issuance of the Note.
Note: This proposed issue does not extend the respective final maturity dates of the refunded bonds/notes.
Tax Status: Tax-Exempt, Non-Bank Qualified
Draw-Down Facility: Draw down facility preferred
Debt Type: General Obligation Note
Rate: Please provide a rate(s) per the Form of Proposal.
Interest: 30/360 day count preferred. Please describe interest calculation method. Interest payable semi-annually on May 1 and November 1 beginning on May 1, 2020
Commitment Fee: Provide any commitment fee the Bank may charge on a not to exceed basis and any fee Bank Counsel (if applicable) may charge on a not to exceed basis.
Prepayment: Prepayment without penalty at any time is required.

Structure: The Note will have principal payable annually on November 1, amortizing, as shown herein.
*Preliminary, subject to change
Security: The Note will be a general obligation of the County, payable from its tax and other general revenues. The County will covenant in a debt authorizing ordinance that it will provide in its budget for each year, and will appropriate from its general revenues in each such year, the amount of the debt service on the Note for such year, and will duly and punctually pay or cause to be paid from its Sinking Fund, or any other of its revenues or funds, the principal of the Note and the interest thereon at the dates and place and in the manner stated in the Note, and for such budgeting, appropriation and payment the County will irrevocably pledge its full faith, credit and available taxing power.
Professional Fees: The costs of the County’s professionals (Financial Advisor and Note Counsel), shall be paid by the County out of the loan proceeds.
Settlement: On or around November 26, 2019. Bid must remain valid for 60 days.

Deadline: Proposals due by 10:00 am on August 28, 2019. Proposals should be submitted via email to:
Dave Pedri –
CC:
Scott Shearer –
Melissa Hughes –
If you have serious interest, the County is making itself available from 9am-12pm on August 14 for a 30 minute due diligence discussion. Please contact Melissa Hughes at 717-232-2723 to schedule.
The County reserves the right to reject any or all proposals, to waive any informality, mistake, error or omission in any bid, and to enter into individual negotiation concerning any proposal.

Documentation: The County's Note Counsel will draft all documents as well as provide the tax exempt opinion for the Note. Closing documentation shall include approved debt proceedings of the County under the Pennsylvania Local Government Unit Debt Act.
NOTE: Should you have any questions relating to any of the information provided in this Request for Proposals, please do not hesitate to contact Scott Shearer or Melissa Hughes.
Contacts: Scott Shearer, PFM Financial Advisors LLC
Melissa Hughes, PFM Financial Advisors LLC
Telephone: (717) 232-2723

Estimated Principal Amortization Schedule*
Date    Principal
11/1/2020    745,000
11/1/2021    320,000
11/1/2022 1,340,000
11/1/2023 2,480,000
11/1/2024      60,000
11/1/2025 2,425,000
11/1/2026 1,395,000
11/1/2027 3,415,000
11/1/2028        5,000
11/1/2029       14,900,000
11/1/2030 8,055,000

Total       35,140,000


*The County reserves the right to resize all principal payments prior to settlement.*


FORM OF PROPOSAL
County of Luzerne, Pennsylvania
General Obligation Note, Series of 2019

The Bank (the “Bank” or “Lender”) hereby agrees to purchase the General Obligation Note, Series of 2019 (the “Note”), to be issued by the County of Luzerne, Pennsylvania (the “County”) in the proposed principal amount of $35,140,000 subject to the terms and conditions set forth in the Request for Proposal dated August 1, 2019 (the “Term Sheet”), which is attached hereto and incorporated herein. The Bank agrees to be legally bound to such terms from the date of this Proposal to the Closing Date of the Note.
Interest Rate. The County shall only consider proposals which clearly express the rate of interest and/or the method of setting such rate of interest and the maximum rate of interest to be charged during the full term of the Series of 2019 Note. Therefore, a qualified proposer must respond to I or II or III or IV below, or any combination, if the bank wishes to provide an option.
I. Fixed Rate of Interest
A fixed rate of interest for the term of the Note equal to % per anum.
and/or
II. Variable Rate of Interest - (5 Year Fixed Rate, Variable Rate Thereafter)
Initial Interest Rate: The initial interest rate on the Note shall be ______% for a period of approximately five years, ending November 1, 2024.
Interest Rate Reset: After the initial fixed interest rate period, the rate shall be reset at ___% of the Wall Street Journal Prime Rate (“Prime”) plus ______ Basis Points (or its equivalent).
Maximum Cap Interest Rate: In no instance shall the interest rate ever exceed 5.00%.
and/or
III. Variable Rate of Interest - (7 Year Fixed Rate, Variable Rate Thereafter)
Initial Interest Rate: The initial interest rate on the Note shall be ______% for a period of approximately seven years, ending November 1, 2026.
Interest Rate Reset: After the initial fixed interest rate period, the rate shall be reset at ___% of the Wall Street Journal Prime Rate (“Prime”) plus ______ Basis Points (or its equivalent).
Maximum Cap Interest Rate: In no instance shall the interest rate ever exceed 5.00%.
and/or
IV. Variable Rate of Interest - (10 Year Fixed Rate, Variable Rate Thereafter)
Initial Interest Rate: The initial interest rate on the Note shall be ______% for a period of approximately ten years, ending November 1, 2029.
Interest Rate Reset: After the initial fixed interest rate period, the rate shall be reset at ___% of the Wall Street Journal Prime Rate (“Prime”) plus ______ Basis Points (or its equivalent).

Maximum Cap Interest Rate: In no instance shall the interest rate ever exceed 5.00%.
Cost & Expenses.
The Bank shall request the reimbursement of its Counsel’s legal fees only, subject to a maximum amount of $__________.
Commitment Fee $_____________ (maximum amount).
The Bank acknowledges that the County reserves the right to reject any and all proposals received in connection with this Request for Proposals.
Respectfully submitted,
Date: _____________________
______________________________________
[Name of Bank]
By: _________________________________
Authorized Officer
______________________________________
[typed or printed name of officer]
Address:
______________________________________
[Address for Correspondence]
______________________________________
Tel. No. __________________________________
[Telephone Number]
Fax No. __________________________________
[Fax Number]
E-mail __________________________________
ACCEPTED this ___ day of _________, 2019
County of Luzerne
By: ___________________________
Authorized Officer
Publication Date/Time:
8/2/2019 10:00 AM
Publication Information:
Proposals for a Bank Loan
Closing Date/Time:
8/28/2019 10:00 AM
Contact Person:
Dave Pedri – david.pedri@luzernecounty.org
CC:
Scott Shearer – shearers@pfm.com
Melissa Hughes – hughesm@pfm.com
If you have serious interest, the County is making itself available from 9am-12pm on August 14 for a 30 minute due diligence discussion. Please contact Melissa Hughes at 717-232-2723 to schedule.

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