Summary:
The City, Orange County, and the City of Orlando, Florida Community Redevelopment Agency have entered into the Amended and Restated Orlando/Orange County Interlocal Agreement approved by the Board of County Commissioners of the County on October 22, 2013, and by the City Council of the Issuer and the governing board of the Agency on November 4, 2013 pursuant to which the County has agreed to transfer certain Contract TDT Revenues, upon the terms and conditions provided therein, to assist in the financing of the Community Venues.
The Resolution authorizes the issuance of not to exceed $270,000,000 in Contract Tourist Development Tax Payments Revenue Bonds, Series 2014A (the “Series 2014A Bonds”) to
(a) finance a portion of the costs of acquiring, constructing, renovating, expanding and equipping, as the case may be, of a portion of the Performing Arts Center, the MLS Stadium, and the Citrus Bowl, (b) make a deposit to the Liquidity Account and the Debt Service Reserve Account established under the Indenture, (c) make a deposit to the Capitalized Interest Account established under the Indenture to pay a portion of the interest due on the Series 2014A Bonds, and (d) pay the costs of issuance related to the Series 2014A Bonds.
To provide additional security and credit support for the payment of the Series 2014A Bonds in the event all other amounts available under the Indenture of Trust are insufficient to make any payment of principal of and interest on the Series 2014A Bonds when due, the City is covenanting to budget and appropriate Covenant Revenues sufficient to cure such debt service deficiencies.
Due to prevailing and anticipated market conditions, and the complexity of the security for the Series 2014A Bonds, it is recommended that the Series 2014A Bonds be sold on a negotiated basis to Merrill Lynch Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., JP Morgan Securities LLC, Jefferies LLC, Stifel Nicolaus, Morgan Stanley & Co. LLC, Rice Financial Products Company and Cabrera Capital Markets (the “Underwriters”), upon the satisfaction of the conditions and terms set forth in the Resolution. Prior to the sale of the Series 2014A Bonds, the Underwriters will be required to provide a Disclosure Statement and Truth In Bonding Statement containing the information required by Section 218.385, Florida Statutes.
The delegation parameters for the sale of the Series 2014A Bonds as set forth in the Resolution are:
Fixed Rate Debt.
Term: Stated final maturity not later than November 1, 2045.
Maximum True Interest Cost: 6.5% (including cost of issuance and underwriter’s spread).
Maximum Bond Issue Size: $270,000,000.
Minimum Purchase Price: 98% of par, subject to original issue discount or premium.
Optional Redemption: To the extent subject to optional redemption, first optional redemption date not earlier than five (5) years from date of issuance.
Additionally, the Resolution approves the form of and authorizes the execution of the Indenture of Trust, the Bond Purchase Contract, the Continuing Disclosure Commitment and,
upon being deemed final by the Mayor and CFO, the Preliminary Official Statement and the Final Official Statement; authorizes the designation of the Trustee and a registrar, paying agent and authenticating agent for the 2014A Bonds; and authorizes the Mayor to approve changes thereto and take other action necessary to complete the transaction.
The Finance Committee recommended approval of this financing at its meeting on November 22, 2013. The original financing parameters approved by the Finance Committee included a final maturity of not later than 30 years from the date of issuance. To provide additional flexibility to create the optimal debt service structure for the City, the attached Resolution includes a revised final maturity parameter of not later than November 1, 2045. This amended final maturity exceeds the initial parameter approved by the Finance Committee by approximately 1.5 years.
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