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t <br />REGULAR MEETING <br />APRIL 1, 1985 <br />EDEN HANNON & COMPANY <br />Lisa A. Cole, Vice -President <br />Municipal Markets <br />101 North Columbus Street <br />Alexandria, Virginia 22314 <br />FUNDING DATE: <br />LEASE TERM: <br />July 15, 1985 <br />Six years <br />PAYMENT MODE: Semi-annual in arrears lease payments on the <br />full principal amount beginning January 15, <br />1986 and for eleven (11) successive periods. <br />FUNDING RATE: Option A - 8.349% 1/; net rate - 6.13% <br />( rate after offsets by <br />interest earnings as a <br />result of escrow fund) 2/ <br />Option B - 8.349% 1/; <br />net rate - 7.98% <br />( rate after offset by <br />interest earnings as a <br />result of escrow fund)2/ <br />1/ This rate will be indexed to the Bond Buyer <br />20-Bond Index and will be fixed at funding. <br />2/ See attachments for assumptions, calcula- <br />tions, gross and net payments. <br />TRANSACTION <br />STRUCTURE: This transaction will be structured as a master <br />lease -purchase agreement. Lessee will make <br />timely and complete remittance of the lease <br />payments due under the terms of the lease <br />agreement. <br />FUNDING STRUCTURE: <br />Upon completion of the necessary documentation, <br />the Lessor will fund the transaction by selling <br />the transaction to public or private investors. <br />The monies will be placed into escrow with a <br />trustee chosen by the Lessee and acceptable <br />to the Lessor. The trustee will disburse <br />funds to the vendors upon notification of <br />Equipment acceptance by the Lessee and upon <br />agreement of the Lessee, Lessor, and trustee. <br />ISSUANCE EXPENSES: <br />RESERVE FUND: <br />The Lessee agrees to pay the expenses <br />associated with issuing this transaction. <br />Expenses will include bond counsel, trustee, <br />and legal for lessor counsel. Such expenses <br />are not expected to exceed $15,000. <br />At Lessee's option, a reserve fund equal to <br />15% of the total issuance can be established. <br />Funds deposited therein will be invested and <br />reinvested in acceptable money market <br />instruments with earnings accruing to Lessee <br />to offset lease payments. At lease termina- <br />tion, the principal of the reserve fund can be <br />used to make the final payment, thereby further <br />reducing the net effective rate. <br />1 <br />1 <br />