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NOV 16 '96 14~02 FR PRU SECiPUB FINiSEA 206 340 4076 TO 915035B85237 P.02 <br />~/l <br />~ <br />To: Biily Wasson <br />IV~ike ~Tansen <br />Scott Clements <br />From: Nancy Wat~Cins <br />Re: Mazion Connty, Urcgon -- Updated Preliminary Numbers <br />Date: Novembcr 1~, 1. 998 <br />Please find upd.$ted numbers related to our discussion on Monday. Presented b~low are two basic <br />scenarios. Scenario 1 assumcs there is not a Stuplus Bond Proceeds call. Without a Surpius Bond <br />Procecds cal~, the Couniy is free to struc;ture the issue with premi~un bonds. Seenaria 2 asstunes <br />there is a Stup]u.` Bond Proceeds call. This Scenario refl~cts how the POS is currentiy written. <br />With a Surplus Band Proceeds call, the County will not be ablc i~ issue premium bonds. <br />Roth Scenarios iucorpurate the same majc~r assumptiuns as the previous set of numbers_ 1'hesc are: <br />(i) first principal payment date of June 1, 2001; (ii) net funding of the constructi~n fund assumii~g <br />~, 4% reinvestment rate; (iii) conshuction drawd~wn schedule which begin~s March 1, 1999 and <br />assumes ]evel drawdown.s until Jt~ly l, 2000; (iv) totai construction fund rec{uirement {including <br />interest) of $20,300,000; (v) capitali7..ed. intcrest t}uough Scptember I, 200d; and (vi) bond ins-~rance <br />premium of 65 basis points_ <br />As shown in the attached Surc~rnary of Assuznptions and Results, Seenario 1, with the use of <br />premium ~x,nds, gcnerates a eontingency of $306,1 ] 4 after dcpositing to the Project Fund an amour,t <br />suPficient to ~ield $24,300,000 (with Project Fund earnings)_ Scenario 2, which represents the <br />current form vf the bond issue, ~esults in a negative contin~ency of ($55,643) bascd on a depc~sit to <br />the Project Fund ofan ~mount suf~icient to yielci $20,300,000 (with Project Fund eanuii~s). If you <br />would like me to chan~e any af ti~e assumptiot~~, plcase Iet nne Icaow. As you can sec, we are still <br />right on the linc. It is important to remetia~r, however, tliat we have u.sed very loose assumptions <br />on the drawdown schedule for tlae Project Fund so there could very well bc more wig~lc room t31an <br />it appears_ If you have an~y questions please fecl tree to ca11 mc at (206) 340-4073. 'Thanlc you for <br />your conside~ation. <br />cc: John Moore <br />