1 SAVINGS MEMORANDUM
TO: Successor Agency to the Hercules Redevelopment Agency
FROM: Urban Futures, Inc.
Wing-See Fox, Managing Director
DATE: January 11, 2022
RE: Independent Municipal Advisor’s Report: Debt Service Savings Analysis for the Successor Agency to the Hercules Redevelopment Agency 2022 Tax Allocation Refunding Bonds _____________________________________________________________________________________
Background
The Successor Agency to the Hercules Redevelopment Agency (the “Agency”) is authorized under Section 34177.5 of the California Health and Safety Code to issue refunding tax allocation bonds and other indebtedness for economic savings within the parameters set forth in Section 34177.5(a)(1) of the California Health and Safety Code (the “Savings Parameters”). In addition, Section 34177 .5(h) of the California Health and Safety Code provides, in relevant part, that the Agency “…shall make use of an independent financial advisor in developing financing proposals and shall make the work products of the financial advisor available to the Department of Finance at its request .” Urban Futures, Inc., has been retained by the Agency to serve as its independent municipal advisor to determine compliance with the Savings Parameters for purposes of the incurrence by the Agency of its 2022 Tax Allocation Refunding Bonds (the “2022 Bonds”).
The Agency will issue the 2022 Bonds to refund the following obligations of the former Redevelopment Agency: (i) Hercules Merged Project Area, Tax Allocation Bonds, Series 2005 (the “2005 Bonds”) ; (ii) Hercules Merged Project Area, Tax Allocation Bonds, 2007 Series A (the “2007A Bonds”) ; (iii) Hercules Merged Project Area, Housing Tax Allocation Bonds, 2007 Series A (Taxable) (the “Taxable 2007A Housing Bonds”); and (iv) the Hercules Merged Project Area, Housing Tax Allocation Bonds, 2007 Series B (the “2007B Housing Bonds”) (collectively, the “Prior Obligations”). The Agency has selected Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) to structure and negotiate the refunding of the Prior Obligations. The financing goal is to maximize economic savings by reducing total debt servi ce, and t he savings generated from this refunding are anticipated to result in higher future property tax distributions to the taxing entities. This report may be used in presentations to the Agency Board and Oversight Board, but actual savings will be final only after the pricing of the 2022 Bonds.
Plan of Refunding
Based on market conditions as of December 21, 2021, t he Underwriter estimates the refunding of the Prior Obligations will achieve combined debt service savings of approximately $25.1 million and Net Present Value savings of approximately $17.8 million, or 19.6% of refunded par, as shown in Tables 2 and
3. The Underwriter’s estimates include the following key assum ptions: (i) all of the outsta nding Prior Obligations are refunded, (ii) an underlying rating of “BBB“ is assigned by S&P to the 20 22 Bonds, (iii) a cash funded reserve fund, (iv) a public market negotiated sale of the 2022 Bonds, and (v) 2022 Bonds are structured to achieve proportional savings. The Successor Agency may select an alternative structure for the 2022 Bonds and other assumptions may be adjusted, which would change the refunding results. 2 Refunding Results
Table 1 below shows the estimated sources and uses for the 2022 Bonds.
Tab
les 2 and 3 below show estimated Cash Flow and Net Present Value savings results assuming market conditions as of December 21, 2021. Additional information can be found in the attached Refunding Analysis.
Sources: 2005 Bonds 2007A Bonds
Taxable 2007A
Housing Bonds
2007B Housing
Bonds Total
Par Amount 25,130,000$ 40,185,000$ 8,290, 000$ 5,305,000$ 78,910,000$ Premium 3,495,790 6,428,948 719,917 10,644,655 28,625,790$ 46,613,948$ 8,290,000$ 6,024,917$ 89,554,655$ Prior Bonds Available Funds 3,312,642 4,271,602 1,110,292 1,253,497 9,948,033 3,312,642$ 4,271,602$ 1,110,292$ 1,253,497$ 9,948,033$ Total Sources of Funds 31,938,433$ 50,885,550$ 9,400,292$ 7,278,414$ 99,502,688$ Uses: 2005 Bonds 2007A Bonds
Taxable 2007A
Housing Bonds 2007B Housing Bonds Total
Refunding Escrow Deposit 29,535,988$ 47,046,461$ 8,605, 863$ 6,770,696$ 91,959,007$ Debt Service Reserve Fund 2,109,257$ 3,372,880$ 695,811$ 445,269$ 6,623,218$ Costs of Issuance 293,188$ 466,209$ 98,618$ 62,449$ 920,463$ Total Uses of Funds 31,938,433$ 50,885,550$ 9,400,292$ 7,278,414$ 99,502,688$ Table 1: Sources and Uses of Funds
2005 Bonds 2007A Bonds
Taxable 2007A
Housing Bonds
2007B Housing
Bonds Total
8/1/2022 621$ 2,169$ 1,487$ 3,937$ 8,215$ 8/1/2023 617,588 626,781 197,426 196,050 1,637,845
8/1/2024 619,650 618,119 193,574 198,925 1,630,268
8/1/2025 620,013 614,019 195,274 196,188 1,625,493
8/1/2026 618,625 609,231 196,657 198,088 1,622,601
8/1/2027 620,475 605,119 193,034 199,375 1,618,002
8/1/2028 620,300 595,719 193,887 200,050 1,609,956
8/1/2029 618,063 593,616 194,372 196,205 1,602,255
8/1/2030 618,738 585,954 194,338 197,010 1,596,039
8/1/2031 617,063 582,921 192,874 197,225 1,590,083
8/1/2032 618,013 574,306 194,875 195,550 1,582,744
8/1/2033 616,300 570,344 195,607 198,225 1,580,476
8/1/2034 156,888 1,006,519 1,163,406
8/1/2035 156,275 999,550 1,155,825
8/1/2036 1,155,550 1,155,550
8/1/2037 659,281 659,281
8/1/2038 655,938 655,938
8/1/2039 655,613 655,613
8/1/2040 658,013 658,013
8/1/2041 657,913 657,913
8/1/2042 655,250 655,250
7,118,608$ 13,681,923$ 2,143,403$ 2,176,827$ 25,120,762$ Table 2: Cash Flow Savings
3 Proposed Refunding Complies With State Law
Based on the 2022 Bonds’ proposed structure and the estimated debt service savings according to numbers prepared by the Underwriter , Urban Futures, Inc., concludes that the 2022 Bonds comply with the Savings Parameters and other requirements of State Law as described below.
A. Total debt service (principal and interest) on the refunding bonds is less than total debt service on the refunded bonds (sec. 34 177.5(a)(1)(A)): Section 34177.5(a)(1)(A) requires that the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded. Table 2 shows estimated total nominal debt service savings of approximately $ 7.1 million for the 2005 Bonds , $13.7 million for the 2007A Bonds , $2.1 million for the Taxable 2007A Housing Bonds, and $2.2 million for the 2007B Housing Bonds ($25.1 million combined), calculated as (i) total debt service on the Prior Obligations, minus (ii) total debt service on the 2022 Bonds . Net Present Value savings are estimated to be approximately: $5.1 million, or 17.38% of refunded par for the 2005 Bonds, $10.1 million, or 21.80% of refunded par for the 2007A Bonds , $1.5 million, or 17.61% of refunded par for the Taxable 2007A Housing Bonds, and $1.1 million, or 1 6.75% of refunded par for the 2007B H ousing Bonds .
Combined, the Net Present Value savings are estimated to be $17.8 million, or 19.61% of refunded par.
The individual and combined Net Present Value savings satisfy the Savings Parameters in Section 34177.5(a)(1) and are well-above the 3% minimum threshold typically targeted by issuers.
B. Refunding bonds principal shall be used only for purposes of refunding outstanding Agency obligations (sec. 34177.5(a) (1)(B)): Section 34177.5(a)(1)(B) requires that the principal amount of the refunding bonds or other indebtedness shall not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance. Table 1 shows the anticipated sources and uses of funds for the 2022 Bonds and confirms that all proceeds of the 2022 Bonds will be used only to defease the Prior Obligations, to establish a debt service reserve fund, and to pay related costs of issuance . Proceeds of the 2022 Bonds will not be used for any other purposes, including new-money purposes.
C. Agency shall make diligent efforts to ensure lowest long-term cost financing is obtained, to structure refunding that does not provide for any bullets or spikes or variable rates, and shall hire an independent financial advisor (sec. 3 4177.5(h)): Section 34177.5(h) requires the Agency to make diligent efforts to ensure that the lowest long -term cost financing is obtained and that the financing not provide for any bullets or spikes or use variable rates. The Agency has retained Urban Futures, Inc., an independent financial advisor registered with the SEC and MSRB, to monitor the pricing of the 2022 Bonds. In order to 2005 Bonds 2007A Bonds
Taxable 2007A
Housing Bonds
2007B Housing
Bonds Total
PV of savings from cash flow 6,262,298$ 11,013,526$ 1,900,807$ 1,925,403$ 21,102,035$ Less: Prior funds on hand(1) (3,312,642)$ (4,271,602)$ (1,110,292)$ (1,253,497)$ (9,948,033)$ Plus: Refunding funds on hand (2) 2,110,469$ 3,372,195$ 698,111$ 446,081$ 6,626,856$ Net PV Savings 5,060,125$ 10,114,119$ 1,488,626$ 1,117,988$ 17,780,858$ Net PV Savings as % of Refunded Par 17.38% 21.80% 17.61% 16.75% 19.61% (1) Primarily consists of reserve account releases in connection with defeasance of Prior Obligations and RPTTF available funds (2) Debt service reserve for 2022 Bonds
Table 3: Net PV Savings Summary
4 achieve the lowest long-term cost of financing, the financing team will explore the use of bond insurance and a surety for the 2022 Bonds, and the Agency will request subordination of pass-through payments. In accordance with Section 34177.5(h), the 2022 Bonds will not be structured to include any bullet principal maturities, debt service spikes or variable rate debt.
Issuance of the 202 2 Bonds by the Agency for the purpose of refunding the Prior Obligations is recommended to achieve debt service savings.
5 Appendix: Refunding Analysis
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 1
SOURCES AND USES OF FUNDS
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Dated Date 05/03/2022
Delivery Date 05/03/2022
Taxable
Refunding of Current
Current Current Housing Tax Refunding of
Refunding of Refunding of A llocation Housing Tax
Tax Allocation Tax Alloc ation Bonds, 2007 Allocation
Bonds, Series Bonds, 2007 Series A Bonds, 2007
Sources: 2005 Series A (Taxable) Series B Total
Bond Proceeds:
Par Amount 25,130,000.00 40,185,000.00 8,290,000.00 5,305,000.00 78,910,000.00 Premium 3,495,790.25 6,428,947.50 719,917.05 10,644,654.80 28,625,790.25
46,613,947.50 8,290,000.00 6,024,917.05 89,554,654.80
Other Sources of Funds:
Revenue Funds 29.04 3.97 2.20 35.21
Reserve Funds 2,812,917.05 3,813,348.03 955,982.73 1,082,585.82 8,664,833.63 RPTTF Funds on Hand 499,696.33 455,548.57 154,305.18 118,796.92 1,228,347.00 2007A Project Reimbursement Account 2,705.69 2,705.69
2007B Housing Project Fund 52,111.57 52,111.57
3,312,642.42
4,271,602.29 1,110,291.88 1,253,496.51 9,948,033.10
31,938,432.67 50,885,549.79 9,400,291.88 7,278,413.56 99,502,687.90 Taxable
Refunding of Current
Current Current Housing Tax Refunding of
Refunding of Refunding of A llocation Housing Tax
Tax Allocation Tax Alloc ation Bonds, 2007 Allocation
Bonds, Series Bonds, 2007 Series A Bonds, 2007
Uses: 2005 Series A (Taxable) Series B Total
Refunding Escrow Deposits:
Cash Deposit 29,535,988.02 47,046,460.68 8,605,862.76 6,770,695.83 91,959,007.29 Other Fund Deposits:
Debt Service Reserve Fund 2,109,256.82 3,372,880.44 695,811.34 445,268.90 6,623,217.50 Delivery Date Expenses:
Cost of Issuance 103,500.82 165,506.59 34,143.33 21,849.26 325,000.00 Underwriter's Discount 188,475.00 301,387.50 62,175.00 39,787.50 591,825.00 291,975.82
466,894.09 96,318.33 61,636.76 916,825.00
Other Uses of Funds:
Contingency 1,212.01 (685.42) 2,299.45 812.07 3,638.11
31,938,432.67 50,885,549.79 9,400,291.88 7,278,413.56 99,502,687.90 Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
6. Fund balances from BNY Mellon as of December 15th
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 2
BOND SUMMARY STATISTICS
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Dated Date 05/03/2022
Delivery Date 05/03/2022
First Coupon 08/01/2022
Last Maturity 08/01/2042
Arbitrage Yield 2.040037%
True Interest Cost (TIC) 2.546142%
Net Interest Cost (NIC) 2.792160%
All-In TIC 2.593742%
Average Coupon 4.166194%
Average Life (years) 9.272
Par Amount 78,910,000.00
Bond Proceeds 89,554,654.80
Total Interest 30,481,088.34
Net Interest 20,428,258.54
Total Debt Service 109,391,088.34
Maximum Annual Debt Service 6,623,217.50
Average Annual Debt Service 5,403,511.50
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 3
SUMMARY OF REFUNDING RESULTS
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Taxable
Refunding of Current
Current Current Housing Tax Refunding of
Refunding of Tax Refunding of Tax Allocation Housing Tax Allocation Allocation Bonds, 2007 Allocation
Bonds, Series Bonds, 2007 Series A Bonds, 2007
2005 Series A (Taxable) Series B Total
Dated Date 05/03/2022 05/03/2022 05/03/2022 05/03/2022 05/03/2022 Delivery Date 05/03/2022 05/03/2022 05/03/2022 05/03/2022 05/03/2022 Arbitrage Yield 2.040037% 2.040037% 2.991593% 2.040037% 2.040037% Escrow Yield
Value of Negative Arbitrage
Bond Par Amount 25,130,000.00 40,185,000. 00 8,290,000.00 5,305, 000.00 78,910,000.00 True Interest Cost 2.002946% 2.721114% 3.133599% 1.942170% 2.546142% Net Interest Cost 2.193185% 2.997863% 3.136617% 2.123052% 2.792160% Average Coupon 4.250000% 4.250000% 3.010976% 4.250000% 4.166194% Average Life 6.399 12.178 5.969 6.028 9.272
Par amount of refunded bonds 29,115,000. 00 46,405,000.00 8,455,000.00 6,675,000.00 90,650,000.00 Average coupon of refunded bonds 4.955243% 4.737876% 6.124720% 4.937531% 4.881961% Average life of refunded bonds 6.653 12.598 6.443 6.317 9.652 PV of prior debt 34,639,841.68 60,491, 867.03 10,626,137.65 7,879, 086.93 113,636,933.29 Net PV Savings 5,060,124.74 10,114,119. 07 1,488,626.31 1,117, 987.88 17,780,858.00 Percentage savings of refunded bonds 17.379786% 21.795322% 17.606461% 16.748882% 19.614846% Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 4
BOND PRICING
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Maturity Yield to Call Call
Bond Component Date Amount Rate Yield Price Maturity Date Price Taxable Serial Bonds:
08/01/2022 705,000 1.200% 1.200% 100.000
08/01/2023 615,000 1.400% 1.400% 100.000
08/01/2024 625,000 1.760% 1.760% 100.000
08/01/2025 635,000 2.020% 2.020% 100.000
08/01/2026 645,000 2.320% 2.320% 100.000
08/01/2027 665,000 2.540% 2.540% 100.000
08/01/2028 680,000 2.790% 2.790% 100.000
08/01/2029 700,000 3.030% 3.030% 100.000
08/01/2030 720,000 3.130% 3.130% 100.000
08/01/2031 745,000 3.230% 3.230% 100.000
08/01/2032 765,000 3.380% 3.380% 100.000
08/01/2033 790,000 3.530% 3.530% 100.000
8,290,000
Tax-Exempt Serial Bonds:
08/01/2022 4,540,000 4.250% 0.620% 100.884
08/01/2023 2,995,000 4.250% 0.820% 104.237
08/01/2024 3,100,000 4.250% 1.030% 107.124
08/01/2025 3,210,000 4.250% 1.130% 109.910
08/01/2026 3,320,000 4.250% 1.300% 112.141
08/01/2027 3,435,000 4.250% 1.480% 113.926
08/01/2028 3,560,000 4.250% 1.630% 115.493
08/01/2029 3,685,000 4.250% 1.770% 116.790
08/01/2030 3,820,000 4.250% 1.830% 118.438
08/01/2031 3,955,000 4.250% 1.920% 119.647
08/01/2032 4,095,000 4.250% 2.050% 120.232
08/01/2033 4,240,000 4.250% 2.120% 119.518 C 2.273% 08/01/2032 100.000 08/01/2034 3,855,000 4.250% 2.190% 118.809 C 2.461% 08/01/2032 100.000 08/01/2035 3,990,000 4.250% 2.220% 118.506 C 2.590% 08/01/2032 100.000 08/01/2036 4,160,000 4.250% 2.240% 118.305 C 2.694% 08/01/2032 100.000 08/01/2037 2,195,000 4.250% 2.270% 118.004 C 2.792% 08/01/2032 100.000 08/01/2038 2,290,000 4.250% 2.300% 117.704 C 2.878% 08/01/2032 100.000 08/01/2039 2,390,000 4.250% 2.330% 117.405 C 2.954% 08/01/2032 100.000 08/01/2040 2,485,000 4.250% 2.360% 117.107 C 3.023% 08/01/2032 100.000 08/01/2041 2,595,000 4.250% 2.390% 116.809 C 3.085% 08/01/2032 100.000 08/01/2042 2,705,000 4.250% 2.420% 116.513 C 3.141% 08/01/2032 100.000 70,620,000
78,910,000
Dated Date 05/03/2022
Delivery Date 05/03/2022
First Coupon 08/01/2022
Par Amount 78,910,000.00
Premium 10,644,654.80
Production 89,554,654.80 113.489614%
Underwriter's Discount (591,825.00) (0.750000%)
Purchase Price 88,962,829.80 112.739614%
Accrued Interest
Net Proceeds 88,962,829.80
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 5
BOND PRICING
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 6
SAVINGS
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Present Value
Prior Refunding to 05/03/2022
Date Debt Service Debt Service Savings @ 2.0400372%
08/01/2022 6,039,012.51 6,030, 797.84 8,214.67 8,174.01 08/01/2023 8,261,062.52 6,623,217.50 1,637, 845.02 1,603,373.01 08/01/2024 8,232,587.52 6,602,320.00 1,630, 267.52 1,563,587.99 08/01/2025 8,205,062.52 6,579,570.00 1,625, 492.52 1,527,367.84 08/01/2026 8,172,918.76 6,550,318.00 1,622, 600.76 1,493,685.17 08/01/2027 8,147,256.26 6,529,254.00 1,618, 002.26 1,459,220.13 08/01/2028 8,116,331.26 6,506,375.50 1,609, 955.76 1,422,484.01 08/01/2029 8,083,358.76 6,481,103.50 1,602, 255.26 1,386,913.23 08/01/2030 8,054,320.02 6,458,281.00 1,596, 039.02 1,353,437.98 08/01/2031 8,023,477.52 6,433,395.00 1,590, 082.52 1,320,943.29 08/01/2032 7,983,987.52 6,401,244.00 1,582, 743.52 1,288,058.61 08/01/2033 7,951,825.02 6,371,349.50 1,580, 475.52 1,259,978.33 08/01/2034 6,151,668.76 4,988, 262.50 1,163,406.26 908,963.25 08/01/2035 6,115,250.00 4,959, 425.00 1,155,825.00 884,700.82 08/01/2036 6,115,400.00 4,959, 850.00 1,155,550.00 866,507.95 08/01/2037 3,477,331.26 2,818, 050.00 659,281.26 484,688.01 08/01/2038 3,475,700.00 2,819, 762.50 655,937.50 472,440.90 08/01/2039 3,478,050.00 2,822, 437.50 655,612.50 462,592.43 08/01/2040 3,473,875.00 2,815, 862.50 658,012.50 454,822.66 08/01/2041 3,478,162.50 2,820, 250.00 657,912.50 445,478.12 08/01/2042 3,475,212.50 2,819, 962.50 655,250.00 434,617.74 134,511,850.21 109,391, 088.34 25,120,761. 87 21,102,035.49 Savings Summary
PV of savings from cash flow 21,102,035.49
Less: Prior funds on hand (9,948,033.10)
Plus: Refunding funds on hand 6,626,855.61
Net PV Savings 17,780,858.00
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 7
SAVINGS
Successor Agency to the Redevelopment Agency of the City of Hercules Current Refunding of Tax Allocation Bonds, Series 2005
Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Present Value
Prior Refunding to 05/03/2022
Date Debt Service Debt Service Savings @ 2.0400372%
08/01/2022 2,456,693.75 2, 456,072.78 620.97 617.90
08/01/2023 3,182,325.00 2,564, 737.50 617,587.50 604,086.07 08/01/2024 3,181,812.50 2,562, 162.50 619,650.00 593,807.39 08/01/2025 3,181,837.50 2,561, 825.00 620,012.50 582,098.11 08/01/2026 3,182,137.50 2,563, 512.50 618,625.00 569,005.90 08/01/2027 3,182,487.50 2,562, 012.50 620,475.00 559,107.31 08/01/2028 3,182,625.00 2,562, 325.00 620,300.00 547,583.74 08/01/2029 3,182,300.00 2,564, 237.50 618,062.50 534,507.98 08/01/2030 3,181,275.00 2,562, 537.50 618,737.50 524,191.32 08/01/2031 3,179,287.50 2,562, 225.00 617,062.50 512,115.56 08/01/2032 3,181,100.00 2,563, 087.50 618,012.50 502,435.79 08/01/2033 3,181,212.50 2,564, 912.50 616,300.00 490,808.26 08/01/2034 814,375.00 657,487. 50 156,887.50 122,451.42 08/01/2035 813,050.00 656,775. 00 156,275.00 119,481.59 39,082,518.75 31,963, 910.28 7,118,608. 47 6,262,298.33 Savings Summary
PV of savings from cash flow 6,262,298.33
Less: Prior funds on hand (3,312,642.42)
Plus: Refunding funds on hand 2,110,468.83
Net PV Savings 5,060,124.74
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 8
SAVINGS
Successor Agency to the Redevelopment Agency of the City of Hercules Current Refunding of Tax Allocation Bonds, 2007 Series A Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Present Value
Prior Refunding to 05/03/2022
Date Debt Service Debt Service Savings @ 2.0400372%
08/01/2022 2,239,646.88 2,237, 477.50 2,169.38 2,158.64 08/01/2023 3,312,293.76 2,685, 512.50 626,781.26 613,692.99 08/01/2024 3,283,793.76 2,665, 675.00 618,118.76 593,019.10 08/01/2025 3,258,793.76 2,644, 775.00 614,018.76 577,197.87 08/01/2026 3,227,043.76 2,617, 812.50 609,231.26 561,139.04 08/01/2027 3,200,118.76 2,595, 000.00 605,118.76 546,125.38 08/01/2028 3,166,843.76 2,571, 125.00 595,718.76 526,829.14 08/01/2029 3,134,803.76 2,541, 187.50 593,616.26 514,375.58 08/01/2030 3,106,353.76 2,520, 400.00 585,953.76 497,504.08 08/01/2031 3,076,258.76 2,493, 337.50 582,921.26 484,939.22 08/01/2032 3,039,518.76 2,465, 212.50 574,306.26 468,141.57 08/01/2033 3,006,368.76 2,436, 025.00 570,343.76 455,524.87 08/01/2034 5,337,293.76 4,330, 775.00 1,006,518.76 786,511.83 08/01/2035 5,302,200.00 4,302, 650.00 999,550.00 765,219.23 08/01/2036 6,115,400.00 4,959, 850.00 1,155,550.00 866,507.95 08/01/2037 3,477,331.26 2,818, 050.00 659,281.26 484,688.01 08/01/2038 3,475,700.00 2,819, 762.50 655,937.50 472,440.90 08/01/2039 3,478,050.00 2,822, 437.50 655,612.50 462,592.43 08/01/2040 3,473,875.00 2,815, 862.50 658,012.50 454,822.66 08/01/2041 3,478,162.50 2,820, 250.00 657,912.50 445,478.12 08/01/2042 3,475,212.50 2,819, 962.50 655,250.00 434,617.74 74,665,063.26 60,983, 140.00 13,681,923. 26 11,013,526.34 Savings Summary
PV of savings from cash flow 11,013,526.34
Less: Prior funds on hand (4,271,602.29)
Plus: Refunding funds on hand 3,372,195.02
Net PV Savings 10,114,119.07
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 9
SAVINGS
Successor Agency to the Redevelopment Agency of the City of Hercules Taxable Refunding of Housing Tax Allocation Bonds, 2007 Series A (Taxable) Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Present Value
Prior Refunding to 05/03/2022
Date Debt Service Debt Service Savings @ 2.0400372%
08/01/2022 758,621.88 757,134. 50 1,487.38 1,480.02
08/01/2023 1,017,243.76 819, 817.50 197,426.26 193,906.49 08/01/2024 1,014,781.26 821, 207.50 193,573.76 186,213.27 08/01/2025 1,015,481.26 820, 207.50 195,273.76 183,952.19 08/01/2026 1,014,037.50 817, 380.50 196,657.00 181,414.70 08/01/2027 1,015,450.00 822, 416.50 193,033.50 174,403.71 08/01/2028 1,014,412.50 820, 525.50 193,887.00 171,542.93 08/01/2029 1,015,925.00 821, 553.50 194,371.50 168,406.53 08/01/2030 1,014,681.26 820, 343.50 194,337.76 164,886.29 08/01/2031 1,015,681.26 822, 807.50 192,873.76 160,247.91 08/01/2032 1,013,618.76 818, 744.00 194,874.76 158,537.48 08/01/2033 1,013,493.76 817, 887.00 195,606.76 155,815.90 11,923,428.20 9,780, 025.00 2,143,403. 20 1,900,807.40
Savings Summary
PV of savings from cash flow 1,900,807.40
Less: Prior funds on hand (1,110,291.88)
Plus: Refunding funds on hand 698,110.79
Net PV Savings 1,488,626.31
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 10
SAVINGS
Successor Agency to the Redevelopment Agency of the City of Hercules Current Refunding of Housing Tax Allocation Bonds, 2007 Series B Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Present Value
Prior Refunding to 05/03/2022
Date Debt Service Debt Service Savings @ 2.0400372%
08/01/2022 584,050.00 580,113. 06 3,936.94 3,917.46
08/01/2023 749,200.00 553,150. 00 196,050.00 191,687.46 08/01/2024 752,200.00 553,275. 00 198,925.00 190,548.24 08/01/2025 748,950.00 552,762. 50 196,187.50 184,119.67 08/01/2026 749,700.00 551,612. 50 198,087.50 182,125.53 08/01/2027 749,200.00 549,825. 00 199,375.00 179,583.73 08/01/2028 752,450.00 552,400. 00 200,050.00 176,528.21 08/01/2029 750,330.00 554,125. 00 196,205.00 169,623.15 08/01/2030 752,010.00 555,000. 00 197,010.00 166,856.30 08/01/2031 752,250.00 555,025. 00 197,225.00 163,640.60 08/01/2032 749,750.00 554,200. 00 195,550.00 158,943.76 08/01/2033 750,750.00 552,525. 00 198,225.00 157,829.31 8,840,840.00 6,664, 013.06 2,176,826. 94 1,925,403.42
Savings Summary
PV of savings from cash flow 1,925,403.42
Less: Prior funds on hand (1,253,496.51)
Plus: Refunding funds on hand 446,080.97
Net PV Savings 1,117,987.88
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 11
BOND DEBT SERVICE
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Period
Ending Principal Interest Debt Service
08/01/2022 5,245,000 785, 797.84 6,030,797.84
08/01/2023 3,610,000 3, 013,217.50 6,623,217.50
08/01/2024 3,725,000 2, 877,320.00 6,602,320.00
08/01/2025 3,845,000 2, 734,570.00 6,579,570.00
08/01/2026 3,965,000 2, 585,318.00 6,550,318.00
08/01/2027 4,100,000 2, 429,254.00 6,529,254.00
08/01/2028 4,240,000 2, 266,375.50 6,506,375.50
08/01/2029 4,385,000 2, 096,103.50 6,481,103.50
08/01/2030 4,540,000 1, 918,281.00 6,458,281.00
08/01/2031 4,700,000 1, 733,395.00 6,433,395.00
08/01/2032 4,860,000 1, 541,244.00 6,401,244.00
08/01/2033 5,030,000 1, 341,349.50 6,371,349.50
08/01/2034 3,855,000 1, 133,262.50 4,988,262.50
08/01/2035 3,990,000 969, 425.00 4,959,425.00
08/01/2036 4,160,000 799, 850.00 4,959,850.00
08/01/2037 2,195,000 623, 050.00 2,818,050.00
08/01/2038 2,290,000 529, 762.50 2,819,762.50
08/01/2039 2,390,000 432, 437.50 2,822,437.50
08/01/2040 2,485,000 330, 862.50 2,815,862.50
08/01/2041 2,595,000 225, 250.00 2,820,250.00
08/01/2042 2,705,000 114, 962.50 2,819,962.50
78,910,000 30,481,088. 34 109,391,088.34
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 12
AGGREGATE DEBT SERVICE
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Taxable
Refunding of Current
Current Current Housing Tax Refunding of
Refunding of Refunding of A llocation Housing Tax
Tax Allocation Tax Alloc ation Bonds, 2007 Allocation
Period Bonds, Series Bonds, 2007 Series A Bonds, 2007 Catellus Housing Aggregate Ending 2005 Series A (Taxable) Series B Payments Bridge Loan Debt Service 08/01/2022 2,456,072.78 2,237,477.50 757,134.50 580,113.06 2,000,000 130,000 8,160,797.84 08/01/2023 2,564,737.50 2,685,512.50 819,817.50 553,150.00 2,000,000 130,000 8,753,217.50 08/01/2024 2,562,162.50 2,665,675.00 821,207.50 553,275.00 2,000,000 130,000 8,732,320.00 08/01/2025 2,561,825.00 2,644,775.00 820,207.50 552,762.50 1,333,333 7,912,903.00 08/01/2026 2,563,512.50 2,617,812.50 817,380.50 551,612.50 1,333,333 7,883,651.00 08/01/2027 2,562,012.50 2,595,000.00 822,416.50 549,825.00 1,333,333 7,862,587.00 08/01/2028 2,562,325.00 2,571,125.00 820,525.50 552,400.00 1,333,333 7,839,708.50 08/01/2029 2,564,237.50 2,541,187.50 821,553.50 554,125.00 1,333,333 7,814,436.50 08/01/2030 2,562,537.50 2,520,400.00 820,343.50 555,000.00 1,333,333 7,791,614.00 08/01/2031 2,562,225.00 2,493,337.50 822,807.50 555,025.00 1,333,333 7,766,728.00 08/01/2032 2,563,087.50 2,465,212.50 818,744.00 554,200.00 1,333,333 7,734,577.00 08/01/2033 2,564,912.50 2,436,025.00 817,887.00 552,525.00 1,333,333 7,704,682.50 08/01/2034 657,487.50 4,330,775.00 1,333,333 6,321,595.50 08/01/2035 656,775.00 4,302,650.00 1,333,333 6,292,758.00 08/01/2036 4,959,850.00 1,333,333 6,293,183.00
08/01/2037 2,818,050.00 1,333,333 4,151,383.00
08/01/2038 2,819,762.50 1,333,333 4,153,095.50
08/01/2039 2,822,437.50 1,333,333 4,155,770.50
08/01/2040 2,815,862.50 1,333,333 4,149,195.50
08/01/2041 2,820,250.00 1,333,333 4,153,583.00
08/01/2042 2,819,962.50 1,333,333 4,153,295.50
31,963,910.28 60,983,140.00 9,780,025.00 6,664,013.06 29,999,994 390,000 139,781,082.34 Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 13
ESCROW REQUIREMENTS
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Period Principal
Ending Interest Redeemed Total
05/16/2022 1,309,007.29 90, 650,000.00 91,959,007.29
1,309,007.29 90,650, 000.00 91,959,007.29
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 14
ESCROW COST
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Purchase Cost of Cash Total
Date Securities Deposit Escrow Cost
05/03/2022 91,959,007. 29 91,959,007.29
0 91,959,007.29 91,959,007.29
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 15
ESCROW SUFFICIENCY
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
05/03/2022 91,959,007.29 91, 959,007.29 91,959,007.29
05/16/2022 91,959,007. 29 (91,959,007.29)
91,959,007.29 91, 959,007.29 0.00
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 16
SUMMARY OF BONDS REFUNDED
Successor Agency to the Redevelopment Agency of the City of Hercules Current Refunding of Tax Allocation Bonds, Series 2005
Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** PRI - Prior Debt
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Tax Allocation Bonds, Series 2005, 2005A, TERM25:
08/01/2025 5.000% 6,285, 000.00 05/16/2022 100.000
Tax Allocation Bonds, Series 2005, 2005A, TERM29:
08/01/2029 5.000% 7,635, 000.00 05/16/2022 100.000
Tax Allocation Bonds, Series 2005, 2005A, TERM35:
08/01/2035 5.000% 10,250, 000.00 05/16/2022 100.000
Tax Allocation Bonds, Series 2005, 2005A, T_ESCROW:
08/01/2035 4.750% 4,945, 000.00 05/16/2022 100.000
29,115,000.00
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 17
SUMMARY OF BONDS REFUNDED
Successor Agency to the Redevelopment Agency of the City of Hercules Current Refunding of Tax Allocation Bonds, 2007 Series A Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** PRI - Prior Debt
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Tax Allocation Bonds, 2007 Series A, 2007A, SERIALS:
08/01/2022 5.000% 1,140, 000.00 05/16/2022 100.000
08/01/2023 5.000% 1,170, 000.00 05/16/2022 100.000
08/01/2024 5.000% 1,200, 000.00 05/16/2022 100.000
08/01/2025 5.000% 1,235, 000.00 05/16/2022 100.000
08/01/2026 4.500% 1,265, 000.00 05/16/2022 100.000
08/01/2027 4.500% 1,295, 000.00 05/16/2022 100.000
7,305,000.00
Tax Allocation Bonds, 2007 Series A, 2007A, TERM32:
08/01/2032 4.700% 6,925, 000.00 05/16/2022 100.000
Tax Allocation Bonds, 2007 Series A, 2007A, TERM37A:
08/01/2037 4.625% 16,555, 000.00 05/16/2022 100.000
Tax Allocation Bonds, 2007 Series A, 2007A, TERM37B:
08/01/2037 5.000% 500,000. 00 05/16/2022 100.000
Tax Allocation Bonds, 2007 Series A, 2007A, TERM42A:
08/01/2042 4.750% 10,120, 000.00 05/16/2022 100.000
Tax Allocation Bonds, 2007 Series A, 2007A, TERM42B:
08/01/2042 5.000% 5,000, 000.00 05/16/2022 100.000
46,405,000.00
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 18
SUMMARY OF BONDS REFUNDED
Successor Agency to the Redevelopment Agency of the City of Hercules Taxable Refunding of Housing Tax Allocation Bonds, 2007 Series A (Taxable) Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** PRI - Prior Debt
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Housing Tax Allocation Bonds, 2007 Series A (Taxable), 2007HTX, TERM22:
08/01/2022 6.000% 500,000. 00 05/16/2022 100.000
Housing Tax Allocation Bonds, 2007 Series A (Taxable), 2007HTX, TERM33:
08/01/2033 6.125% 7,955, 000.00 05/16/2022 100.000
8,455,000.00
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 19
SUMMARY OF BONDS REFUNDED
Successor Agency to the Redevelopment Agency of the City of Hercules Current Refunding of Housing Tax Allocation Bonds, 2007 Series B Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** PRI - Prior Debt
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Housing Tax Allocation Bonds, 2007 Series B, 2007B, SERIAL:
08/01/2022 4.500% 420,000. 00 05/16/2022 100.000
Housing Tax Allocation Bonds, 2007 Series B, 2007B, TERM27:
08/01/2027 5.000% 2,435, 000.00 05/16/2022 100.000
Housing Tax Allocation Bonds, 2007 Series B, 2007B, TERM30:
08/01/2030 4.800% 1,775, 000.00 05/16/2022 100.000
Housing Tax Allocation Bonds, 2007 Series B, 2007B, TERM33:
08/01/2033 5.000% 2,045, 000.00 05/16/2022 100.000
6,675,000.00
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.
Dec 23, 2021 10:48 am Prepared by Stifel, Nicolaus & Company, Inc (SM) Page 20
UNDERWRITER EXCLUSION DISCLOSURE
Successor Agency to the Redevelopment Agency of the City of Hercules Tax Allocation Refunding Bonds, Series 2021
*********************************************************************** Market Conditions as of December 21, 2021 plus 25bps
Assumes 'BBB' Underlying S&P Rating, DSRF, and Proportional Refunding 2005A, 2007A, & 2007B Housing Bonds Refunded on a Tax-Exempt Basis 2007A Housing Bonds Refunded on a Taxable Basis
*********************************************************************** Stifel, Nicolaus & Company, Incorporated ('Stifel') has been engaged or appointed to serve as an underwriter or placement agent with respect to a particular issuance of municipal securities to which the attached material relates and Stifel is providing all information and advice contained in the attached material in its capacity as underwriter or placement agent for that particular issuance. As outlined in the SEC's Municipal Advisor Rule, Stifel has not acted, and will not act, as your municipal advisor with respect to the issuance of the municipal securities that is the subject to the engagement.
Stifel is providing information and is declaring to the proposed municipal issuer that it has done so within the regulatory framework of MSRB Rule G-23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm's-length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate.
These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and / or counsel as you deem appropriate.
Notes:
1. Preliminary and subject to change. The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
2. The use of the 'BBB' S&P rating is based on similar credits.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. The costs of issuance and underwriter's discount are estimates for discussion purposes only.
5. Structured with cash-funded DSRF.