RFQ2025-002_Capital_Improvement_Revenue_Bonds_Series_2025.pdf

City of Kissimmee, Florida Request for Quotes

$22,000,000* Capital Improvement Revenue Bonds, Series 2025 (Taxable)

RFQ 2025-002 Issue Date: April 13, 2025

Quote Due Date: 2:00 p.m. EDST April 28, 2025

• Estimated, not to exceed

MEMORANDUM

TO: Prospective Proposers

FROM: Richard T. Wagner, Financial Advisor

RE: City of Kissimmee, Florida (“City”) Request for a Quote for a Taxable Direct Loan

DATE: April 10, 2025

In our capacity as Financial Advisor to the City, we have been asked to solicit your interest in submitting a quote for a Taxable Direct Loan in an amount up to $22.0 million (“Loan” or “Series 2025 Bond”) as outlined herein. The City is interested in receiving the lowest borrowing cost together with the most favorable terms on the Loan in the sole discretion of the City.

The Loan proceeds will be used to make capital improvements at the City owned Gateway Airport and provide capitalized interest for the first year and costs of issuance on the Loan. The Loan will be payable from and secured solely by Pledged Funds as more fully described herein (see “Security” herein.

Upon your review of the enclosed, if you have questions or requests for additional information, contact Tavia Ritchie, City Finance Director,: (407) 518 - 2220, e-mail tavia.ritchie@kissimmee.gov or the Authority’s Financial Advisor, Richard T. (Toby) Wagner, President, Southeastern Investment Securities, LLC, (407) 647-1000 e-mail: rtwagner@myflfa.net.

mailto:kshelby@fkaa.com mailto:tavia.ritchie@kissimmee.gov mailto:rtwagner@myflfa.net

NOTICE OF REQUEST FOR A QUOTE TO

THE CITY OF KISSIMMEE, FLORIDA

INTRODUCTION

The City of Kissimmee, Florida ("City") hereby solicits a sealed Quote for Taxable Direct Loan in accordance with the terms, conditions, and specifications outlined in this Request for a Quote ("Quote") and the attached Summary of Proposed Terms.

LOAN PURPOSE AND SECURITY

Purpose of the Loan

Issuance by the City of a not to exceed $22.0 million Loan, the proceeds of such Loan to be used for capital improvements at the City owned Gateway Airport, fund capitalized interest and pay related costs of issuance on the financing.

Security

The Series 2025 Bond will be a limited, special obligations of the City payable from and secured solely by a pledge of and lien on certain Pledged Funds, consisting of (1) Non-Ad Valorem Revenues budgeted, appropriated, and deposited into the Debt Service Fund, and (2) until applied in accordance with the provisions of the Bond Resolution, all moneys, including the investments thereof, in the funds and accounts established in the Bond Resolution, with the exception of the Rebate Fund.

Pursuant to the Bond Resolution, the City will covenant and agree to appropriate in its annual budget, by amendment, if necessary, for each Fiscal Year in which the Series 2025 Bond remains Outstanding, and deposit into the Debt Service Fund, sufficient amounts of Non-Ad Valorem Revenues for the payment of principal of, redemption premium, if applicable, and interest on the Series 2025 Bond and to make certain other payments required under the Bond Resolution in each such Fiscal Year. The obligation of the City to budget, appropriate, deposit and make payments pursuant to the Bond Resolution from its Non-Ad Valorem Revenues is subject to the availability of Non-Ad Valorem Revenues after the satisfaction of the funding requirements for obligations having an express lien on or pledge of such revenues and the funding requirements for essential governmental services of the City.

No debt service reserve account will be established for the Series 2025 Bond.

The City has reserved the right to issue additional debt payable from and secured by a pledge of the Pledged Funds.

QUOTE DUE DATE

Quotes for the Loan will be received at the Office of the City Finance Director with an original with five (5) copies and an electronic version on Flash Drive no later than 2:00 PM EST on April 28, 2025. Fax and/or email bids will not be accepted.

Quotes for the Loan shall be marked “RFQ 2025-002 LOAN QUOTE – CITY OF KISSIMMEE, SERIES 2025 BOND” and addressed as follows:

Brandon Durango, Financial Resources & Systems Manager

CITY OF KISSIMMEE

101 Church Street Kissimmee, FL 34741 Telephone 407.518.2216 brandon.durango@kissimmee.gov

SUBMISSION OF QUOTES:

A. ACCEPTANCE/REJECTION/MODIFICATION TO QUOTES:

The City reserves the right to negotiate modifications to Quotes that it deems acceptable, to reject any and all Quotes, to waive minor irregularities in the procedures and to award to other than the low Bidder if it is in the best interests of the City in its sole discretion.

B. There is no express or implied obligation for the City to reimburse Bidders for any expenses incurred in the analysis or preparation and delivery of Quotes in response to this request.

C. QUOTES BINDING:

All Quotes submitted should be binding until May 31, 2025.

ADDITIONAL INFORMATION:

Annual Financial Reports of the City can be obtained on the City’s website www.kissimmee.gov, from the City’s Finance Director, Tavia Ritchie at 407.518.2220 or the City’s Financial Advisor, Richard T. Wagner at 407.647.1000.

mailto:brandon.durango@kissimmee.gov http://www.kissimmee.gov/

REQUEST FOR A LOAN QUOTE

CITY OF KISSIMMEE, FLORIDA

SERIES 2022

Summary of Proposed Terms

Issuer/Borrower: City of Kissimmee, Florida (“City”)

Amount: Not to exceed $22,000,000*

Bank Qualification: The Series 2025 Bond (“Series 2025 Bond” or “Loan”) will be a taxable obligation.

Award Date: An award by the City Commission is expected on May 6, 2025.

Funding Date: Expected on or before August 4, 2025. However, the City would consider a delayed delivery up to September 29, 2025.

Commitment Date: Quotes will be received no later than 2:00 P.M. EST on April 28, 2025, by: [Brandon Durango, Financial Resources & Systems Manager, City of Kissimmee, 101 Church Street, Kissimmee, FL 34741, Telephone:

407.518.2216 brandon.durango@kissimmee.gov]

Purpose of the Loan: The Series 2025 Bond proceeds will be used to provide funds for capital improvements at the City owned Gateway Airport, capitalized interest during and provide costs of issuance on the Loan.

Authority: The obligation to repay the Series 2025 Bond will be evidenced by a promissory note to be issued pursuant to Chapter 166, Part II, Florida Statutes and other applicable provisions of law including a Resolution of the City.

Documentation: The City's obligation to repay the Series 2025 Bond will be evidenced by a Promissory Note prepared by bond counsel to the City, Bryant Miller Olive, Orlando, Florida, at the City’s expense.

*Estimated not to exceed amount mailto:brandon.durango@kissimmee.gov

Financing Structure: The City is requesting financing in the amount of not to exceed $22.0 million*. The requested financing commitment is for a fixed rate Loan to be drawn in full at closing. However, the City would entertain the option to draw down over a 13-month period from October 1, 2025 in amounts agreeable with the Lender. Additionally, the City is reviewing the option of having its existing underwriter, Hilltop Securities, Inc. underwrite all or a portion of the Series 2025 Bond and the City’s staff and finance team will compare Quotes received with that opportunity. Such comparison may result in all, or a portion of the Series 2025 Bond being transacted as a direct placement with a bank or financial institution or underwritten by the City’s underwriter.

There will not be a debt service reserve account supplementing the security outlined herein.

Security: The Series 2025 Bond will be a limited, special obligation of the City payable from and secured solely by a pledge of and lien on certain Pledged Funds, consisting of (1) Non-Ad Valorem Revenues budgeted and appropriated, and deposited into the Debt Service Fund, and (2) until applied in accordance with the provisions of the Bond Resolution, all moneys, including the investments thereof, in the funds and accounts established in the Bond Resolution, with the exception of the Rebate Fund. Pursuant to the Bond Resolution, the City will covenant and agree to appropriate in its annual budget, by amendment, if necessary, for each Fiscal Year in which the Series 2025 Bond remains Outstanding, and deposit into the Debt Service Fund, sufficient amounts of Non-Ad Valorem Revenues for the payment of principal of, redemption premium, if applicable, and interest on the Series 2025 Bond and to make certain other payments required under the Bond Resolution in each such Fiscal Year. The obligation of the City to budget, appropriate, deposit and make payments pursuant to the Bond Resolution from its Non-Ad Valorem Revenues is subject to the availability of Non-Ad Valorem Revenues after the satisfaction of the funding requirements for obligations having an express lien on or pledge of such revenues and the funding requirements for essential governmental services of the City.

Repayment Terms: Interest payable semi-annually on April 1 and October 1 of each year commencing April 1, 2026. Principal payments will commence on October 1, 2026, with a final maturity of not later than October 1, 2040 and a level annual debt service structure based upon the proceeds drawn.

Early Prepayment: The Loan could be repaid in whole or in part in any manner at the sole discretion of the City with sufficient notice to the lender without penalty or premium. If there would be a penalty or premium state the terms.

Yield Maintenance/ Marginal Tax and Acceleration: Quotes shall not include any so-called “gross-up” language, including but not limited to yield maintenance capital regulations, marginal tax adjustments or other interest rate adjustment language with respect to changes in law.

Provision for acceleration will not be permitted.

Additional Restrictions/ Covenants: The City prefers no anti-dilution test during the term of the Loan. Lender shall specify any additional covenants and restrictions.

Commitment Award: The award will be made on the most favorable Quote as determined by and in the sole discretion of the City.

Additional: At closing, the selected Proposer will make standard accredited investor certifications acceptable to the City’s bond counsel.

INFORMATION REQUESTED IN QUOTES

TO PROVIDE A DIRECT LOAN TO THE CITY

Category Information Requested

Amount of Loan Specify that the bank/lender is willing to offer a fixed rate Loan not to exceed $22.0 million with any drawdown provisions up to 13 months after closing amortized on a level annual debt service structure for 15 years.

Source of Repayment Confirm that the Loan will be secured by Pledged Funds outlined herein.

Final Maturity October 1, 2040.

1. Origination/ ongoing fees

Specify what fees the bank/lender would charge in connection with this transaction in addition to the interest rate.

2. Outside Bank Counsel Specify if there are any outside bank/lender counsel charges. If so, what firm and the amount of such charges.

3. Other fees and expenses Identify any other fees the City would incur either one time or ongoing with a cap on such fees.

4. Credit Approval State the status of your credit approval for this Loan.

If approval has not been granted, indicate how long it will take for such final approval.

5. Prepayment

Acknowledge that prepayment on the Loan may be made by the City at its sole discretion without premium or penalty or terms required by the Lender/Bank.