Item N6BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: June 15, 2011 Division: Monroe Count
Bulk Item: Yes X No _ Department: Administration
Staff Contact Person/Phone: Marva Green ext3139
AGENDA ITEM WORDING: Approval to accept the proposal from Bank of America for the
extension of the Letter of Credit associated with the Monroe County, Florida Series 2006 Airport
Variable Rate Revenue Bonds. (see attached e-mail).
ITEM BACKGROUND: This letter will extend the existing Letter of Credit for a period of three
years at 68 basis points, a reduction of 12 basis points.
PREVIOUS RELEVANT BOCC ACTION:
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: INDIRECT COST:
BUDGETED: Yes No
COST TO COUNTY: SOURCE OF FUNDS:
REVENUE PRODUCING: Yes No AMOUNT PER MONTH
APPROVED BY: County Atty _ OMB/Purchasing Risk Management
DOCUMENTATION: Included Not Required
DISPOSITION:
Revised 1/09
AGENDA ITEM #
Year
Marva Green
From:
Kuhlman, Holly L [holly.kuhlman@baml.com]
Sent:
Thursday, May 26, 2011 2:35 PM
To:
Sergio Masvidal; mgreen@monroe-clerk.com
Cc:
Winn, John; Trumbull, Diane; Roberts, Amyl L
Subject:
Monroe County Key West Airport
Attachments:
Term Sheet May 25, 2011.doc
Sergio and Marva, attached please find a term sheet allowing for the refunding of existing Series 2006 Airport Bonds to
a bank qualified variable rate bank note. Since we have been advised that it is the County's intent to pay off the note as
quickly as possible the variable rate note allows for prepayment flexibility. The note would have a three year or five year
maturity but allow the existing amortization to remain in place in order to provide payment flexibility. I have kept the
term at three or five years as it lets the County take advantage of short term interest rates. The Bank would consider
alternative amortizations and/or maturities at County's request.
In addition to providing the variable rate loan alternative, the Bank would also be willing to extend the existing Letter of
Credit for a period of three years at 68 basis points. If you choose this route, we will need is a letter from the County
stating that they wish to extend the letter of credit for an additional three years and we will issue the required
amendment.
Please let us know if either of these options work for the County and how you would like to proceed. Thanks, Holly
Holly Kuhlman
Senior Vice President/Senior Credit Products Officer
Bank of America Merrill Lynch
4501 Tomiami Trail North, Suite 400
Naples, Florida 34105
(239) 659-2275
holl y. kuhlmanC@baml. com
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MONROE COUNTY COURTHOUSE
500 WHITEHEAD STREET, SUITE 101
KEY WEST, FLORIDA 33040
TEL. (305) 294-4641
FAX (305) 295-3663
BRANCH OFFICE:
MARATHON SUB COURTHOUSE
3117 OVERSEAS HIGHWAY
MARATHON, FLORIDA 33050
TEL. (305) 289-6027
FAX (305) 289-1745
May 27, 2011
b�GOUNT,, `,
Amv
CLERK OF THE CIRCUIT COURT
MONROE COUNTY
www.clerk-of-the-court.com
Ms. Holly Kuhlman, Sr. Vice -President
Bank of America Merrill Lynch
4501 Tamiami Trail North, Ste. 400
Naples, FL 34105
Dear Ms. Kuhlman,
BRANCH OFFICE:
PLANTATION KEY
GOVERNMENT CENTER
88820 OVERSEAS HIGHWAY
PLANTATION KEY, FLORIDA 33070
TEL. (305) 852-7145
FAX (305) 852-7146
ROTH BUILDING
50 HIGH POINT ROAD
PLANTATION KEY, FLORIDA 33070
TEL. (305) 852-7145
FAX (305) 853-7440
This letter is to inform you that it is my intention to recommend to the Board of
County Commissioners at the next board meeting on June 15, 2011 that the
Letter of Credit associated with the Monroe County, Florida Series 2006 Airport
Variable Rate Revenue Bonds be extended at the terms described in your e-mail
dated May 26, 2011.
We welcome the opportunity to continue our relationship.
Sincerely,
Danny L. Kolhage
Clerk of the Court
Monroe County, Florida
Page 1 of 1
Pam Hancock
From: "Marva Green" <mgreen@monroe-clerk.com>
To: "'Pam Hancock"' <phancock@monroe-clerk.com>
Sent: Tuesday, May 31, 2011 9:43 AM
Subject: Additional Attachment for DK's agenda item
From: Sergio Masvidal [mailto:MASVIDALS@pfm.com]
Sent: Saturday, May 28, 2011 10:51 AM
To: Marva Green
Subject: Bank of America Letter of Credit Proposal
Marva,
We have reviewed the Bank of America proposal to extend their Letter of Credit for the 2006 Airport Bonds.
Their proposed extension at a rate of 68 basis points for a three year facility, and within the same terms as the
original LOC, is a fair proposal in the current market. Over the course of the last month we have seen LOC
extensions ranging from 1-3 years and at rates ranging from 45 to 100 basis points. The majority of those Letter
of Credit extensions completed in Florida over the last month were for credits rated in the 'A' category or above.
Based on the range of comparables and current market conditions, PFM recommends that the County execute
the Letter of Credit extension with Bank of America.
Please feel free to contact me if you have any questions or comments. Thank you.
Sergio Masvidal
Senior Managing Consultant
The PFM Group
2121 Ponce De Leon Boulevard, Suite 510
Coral Gables, Florida 33134
Tel: 305-448-6992
Fax: 305-448-7131
masvidals@publicfm.com
5/31/2011