FINAL CLOSING MEMORANDUM

Transcription

1 2325 E. Camelback Road, Suite 750, Phoenix, Arizona (602) Pages Total via FINAL CLOSING MEMORANDUM TO: Those included on the attached Closing Distribution List Attachment A Phone Address FROM: Mark Reader Stifel, Nicolaus & Company, Inc. (602) mreader@stifel.com Randie Stein Stifel, Nicolaus & Company, Inc. (602) rstein@stifel.com Ken Cherevka Stifel, Nicolaus & Company, Inc. (602) kcherevka@stifel.com Dawn Castro Stifel, Nicolaus & Company, Inc. (602) castrod@stifel.com Sally Peck Stifel, Nicolaus & Company, Inc. (602) pecks@stifel.com DATE: November 8, 2017 RE: $68,880,000 Transportation Excise Tax Revenue Refunding Bonds (Pima County Regional Transportation Fund), Series 2017 Wells Fargo Bank, National Association, acting on behalf of itself and Citigroup Global Markets Inc. and Piper Jaffray & Co. (collectively the Underwriters ), priced the above-referenced bond issue for the Regional Transportation Authority of Pima County, Arizona (the Authority ) on Tuesday, October 24, The Bond Purchase Agreement is dated Tuesday, October 24, This document provides the final pricing, wire information, underwriting data and bond proceeds disposition necessary to close the transaction. Closing is scheduled for Wednesday, November 8, 2017 at 9:00 A.M. (MST) and will be conducted via teleconference call. Dial In instructions: (877) followed by passcode: #. The following data is included within the attachments: Attachment A Distribution List Attachment B Obligation Data Sources and Uses of Funds Bond Debt Service Bond Pricing Bond Summary Statistics Proof of Arbitrage Yield Escrow Descriptions Form 8038 Statistics Financial Advisor Disclosure

2 Transportation Excise Tax Revenue Refunding Bonds (Pima County Regional Transportation Fund), Series 2017 November 8, 2017 Page 2 I. Net Purchase Price for the Series 2017 Bonds Par Amount $68,880, Original Issue Premium 13,754, Less: Underwriters Discount (1) (133,247.44) NET PURCHASE PRICE: $82,501, (1) Includes expenses and fees for Counsel to the Underwriters. II. Payment for Bonds and Disposition of Proceeds On Wednesday, November 8, 2017, not later than 8:30 AM (MST), Wells Fargo Bank, National Association, on behalf of itself and the Underwriters will wire the Net Purchase Price as follows: A. $82,157, to Zions Bank, a division of ZB, National Association, as Escrow Agent (the Escrow Agent ) under the Escrow Agreement, dated as of November 1, 2017 (the Escrow Agreement ), between the Authority and the Escrow Agent, representing the amount necessary to provide for the refunding of certain Series 2011 Bonds described in the Escrow Agreement. Wire instructions for delivery are as follows: Wire Instructions: Bank: ZB, NA dba Zions Bank Salt Lake City, Utah ABA Number: BNF: Arizona Corporate Trust Account #: Reference RTA of Pima County ExTxRevRef Srs 2017 Attention: Scott Blair (602) Upon receipt, the Escrow Agent will apply $82,157, of such amount to purchase the Defeasance Securities (as defined in the Escrow Agreement) set forth on Attachment B hereto and hold $0.50 of such amount in cash under the Escrow Agreement. B. $343, to Wells Fargo Bank, National Association, as the Authority s depository bank (the Depository ), representing the amount necessary to pay costs of issuance of the Series 2017 Bonds.

3 Transportation Excise Tax Revenue Refunding Bonds (Pima County Regional Transportation Fund), Series 2017 November 8, 2017 Page 3 Wire instructions for delivery are as follows: Wire Instructions: Bank: Wells Fargo Bank, N.A. ABA Number: BNF: Trust Wire Clearing Account #: FFC Account # Series 2017 Bond Proceeds Account Attention: Vanessa Fulton (602) Upon receipt, the Depository shall deposit such funds into the Series 2017 Subaccount of the Bond Proceeds Account held by the Depository. III. Debt Service and CUSIP Numbers REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY, ARIZONA $68,880,000 TRANSPORTATION EXCISE TAX REVENUE REFUNDING BONDS (PIMA COUNTY REGIONAL TRANSPORTATION FUND), SERIES 2017 Dated Date: November 8, 2017 Delivery Date: November 8, 2017 DEBT SERVICE SCHEDULE CUSIP No. Total Fiscal Year 72178R Date Principal Coupon Interest Debt Service Debt Service 6/1/2018 $ 1,942, ,942, $ 1,942, /1/2018 1,722, ,722, /1/2019 1,722, ,722, ,444, /1/2019 1,722, ,722, BM6 6/1/2020 $ 1,535, % 1,722, ,257, ,979, /1/2020 1,683, ,683, BN4 6/1/2021 1,610, % 1,683, ,293, ,977, /1/2021 1,643, ,643, BP9 6/1/ ,900, % 1,643, ,543, ,186, /1/2022 1,345, ,345, BQ7 6/1/ ,490, % 1,345, ,835, ,181, /1/2023 1,033, ,033, BR5 6/1/ ,115, % 1,033, ,148, ,182, /1/ , , BS3 6/1/ ,770, % 705, ,475, ,181, /1/ , , BT1 6/1/ ,460, % 361, ,821, ,183, TOTAL $ 68,880,000 $ 22,377, $ 91,257, $ 91,257,533.33

4 ATTACHMENT A REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY, ARIZONA $68,880,000, TRANSPORTATION EXCISE TAX REVENUE REFUNDING BONDS, SERIES 2017 FINANCING DISTRIBUTION LIST Issuer: Regional Transportation Authority 1 E. Broadway Blvd., Suite 401 Tucson, AZ Fax: (520) Farhad Moghimi, P.E., Executive Director (520) ext fmoghimi@pagregion.com Jim DeGrood, P.E., Deputy Director (520) ext jdegrood@rtamobility.com Robert Samuelsen, Finance Director (520) ext rsamuelsen@pagregion.com Corrina Gil, Program Manager (520) CGil@pagregion.com Jacki Ontiveros, Executive Assistant (520) jontiveros@pagregion.com Issuer s Counsel: Benavidez Law Group, P.C N. Oracle Rd., Building 7 Tucson, AZ Fax: (520) Thomas A. Benavidez, Esq. (520) tbenavidez@benavidezlaw.com Bond Counsel: Squire Patton Boggs (US) LLP 1 E. Washington St., Suite 2700 Phoenix, AZ Fax: (602) Timothy Pickrell, Esq. (602) timothy.pickrell@squirepb.com Brandon Arents, Esq. (602) brandon.arents@squirepb.com Pedro J. Miranda, Esq. (602) pedro.miranda@squirepb.com Financial Advisor: Stifel, Nicolaus & Company, Inc E. Camelback Rd., Suite 750 Phoenix, AZ Fax: (602) Mark Reader, Managing Director (602) mreader@stifel.com Randie Stein, Director (602) rstein@stifel.com Ken Cherevka, Analyst (602) kcherevka@stifel.com Dawn Castro, Public Finance Assistant (602) castrod@stifel.com Sally Peck, Closing Coordinator (602) pecks@stifel.com th St., Suite 1600 Denver, CO Mike Imhoff, Managing Director (303) mimhoff@stifel.com Prepared by Stifel. November 1, 2017 Page 1 of 3

5 REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY, ARIZONA $68,880,000, TRANSPORTATION EXCISE TAX REVENUE REFUNDING BONDS, SERIES 2017 FINANCING DISTRIBUTION LIST Underwriters: Wells Fargo Securities 100 West Washington, 20 th Floor Phoenix, AZ Tye Burgess, Vice President (602) S. Main, 6 th Floor Salt Lake City, UT Bob Kinney, Managing Director (385) bob.kinney@wellsfargo.com 333 S. Grand Ave., 5 th Floor Los Angeles, CA Trung Luc, Associate (213) trung.luc@wellsfargo.com Co-Managers: Citigroup Global Markets 601 Union Street, Suite 5130 Seattle, WA Timothy Rattigan, Managing Director (206) timothy.a.rattigan@citi.com Alexander Zaman, Associate (415) alexander.zaman@citi.com 390 Greenwich Street, 2nd Floor New York, NY Keisha Belinfanti, Director (212) keisha.belinfanti@citi.com Jay Wheatley, Head Underwriter (212) jay.wheatley@citi.com Piper Jaffray & Co E. Camelback Road, Suite 925 Phoenix, AZ Bill Davis, Managing Director (602) William.C.Davis@pjc.com Emily Berry (602) emily.m.berry@pjc.com 800 Nicollet Mall Minneapolis, MN, Neil Heinen, Underwriter (612) Neil.A.Heinen@pjc.com Underwriter s Counsel: Greenberg Traurig, LLP 2375 E. Camelback Rd., Suite 700 Phoenix, AZ Fax: (602) Michael Cafiso, Esq. (602) cafisom@gtlaw.com Paul Gales, Esq. (602) galesp@gtlaw.com Rating Agencies: Fitch Ratings 111 Congress Ave., Suite 2010 Austin, TX Steve Murray, Senior Analyst (512) steve.murray@fitchratings.com 650 California Street, Suite 2250 San Francisco, CA Andrew Ward, Analyst (415) andrew.ward@fitchratings.com Prepared by Stifel. November 1, 2017 Page 2 of 3

6 REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY, ARIZONA $68,880,000, TRANSPORTATION EXCISE TAX REVENUE REFUNDING BONDS, SERIES 2017 Standard and Poor s 7400 S. Alton Court Centennial, CO Alyssa Farrell, Rating Analyst (303) alyssa.farrell@spglobal.com One California Street, 31st Floor San Francisco, CA Sarah Sullivant, Rating Analyst (415) sarah.sullivant@spglobal.com Escrow Trustee: ZB, NA dba Zions Bank 6001 N. 24th Street Phoenix, AZ Gregory Cross, Vice President & Manager (602) gregory.cross@zionsbank.com Scott Blair, Vice President (602) scott.blair@zionsbank.com Depository: Wells Fargo Bank, N.A. MAC S W. Washington, 22 nd Floor Phoenix, AZ Fax: (866) Vanessa Fulton (602) vanessa.l.fulton@wellsfargo.com FINANCING DISTRIBUTION LIST Prepared by Stifel. November 1, 2017 Page 3 of 3

7 ATTACHMENT B Sources and Uses of Funds... 1 Bond Debt Service... 2 Bond Pricing... 3 Bond Summary Statistics... 4 Proof of Arbitrage Yield... 5 Escrow Descriptions... 6 Form 8038 Statistics... 7 Financial Advisor Disclosure... 9 Page

8 Nov 1, :09 pm Page 1 SOURCES AND USES OF FUNDS Dated Date 11/08/2017 Delivery Date 11/08/2017 Sources: Bond Proceeds: Par Amount 68,880, Premium 13,754, ,634, Uses: Refunding Escrow Deposits: Cash Deposit 0.50 SLGS Purchases 82,157, ,157, Delivery Date Expenses: Cost of Issuance 343, Underwriter's Discount 133, , ,634,251.95

9 Nov 1, :09 pm Page 2 BOND DEBT SERVICE Dated Date 11/08/2017 Delivery Date 11/08/2017 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/08/ /01/2018 1,942, ,942, ,942, /01/2018 1,722, ,722, /01/2019 1,722, ,722, ,444, /01/2019 1,722, ,722, /01/2020 1,535, % 1,722, ,257, ,979, /01/2020 1,683, ,683, /01/2021 1,610, % 1,683, ,293, ,977, /01/2021 1,643, ,643, /01/ ,900, % 1,643, ,543, ,186, /01/2022 1,345, ,345, /01/ ,490, % 1,345, ,835, ,181, /01/2023 1,033, ,033, /01/ ,115, % 1,033, ,148, ,182, /01/ , , /01/ ,770, % 705, ,475, ,181, /01/ , , /01/ ,460, % 361, ,821, ,183, ,880,000 22,377, ,257, ,257,533.33

10 Nov 1, :09 pm Page 3 BOND PRICING Maturity Premium Bond Component Date Amount Rate Yield Price ( Discount) Serial Bond: 06/01/2020 1,535, % 1.160% , /01/2021 1,610, % 1.280% , /01/ ,900, % 1.410% ,881, /01/ ,490, % 1.580% ,266, /01/ ,115, % 1.680% ,695, /01/ ,770, % 1.810% ,091, /01/ ,460, % 1.950% ,462, ,880,000 13,754, Dated Date 11/08/2017 Delivery Date 11/08/2017 First Coupon 06/01/2018 Par Amount 68,880, Premium 13,754, Production 82,634, % Underwriter's Discount 133, % Purchase Price 82,501, % Accrued Interest Net Proceeds 82,501,004.51

11 Nov 1, :09 pm Page 4 BOND SUMMARY STATISTICS Dated Date 11/08/2017 Delivery Date 11/08/2017 First Coupon 06/01/2018 Last Maturity 06/01/2026 Arbitrage Yield % True Interest Cost (TIC) % Net Interest Cost (NIC) % All In TIC % Average Coupon % Average Life (years) Duration of Issue (years) Par Amount 68,880, Bond Proceeds 82,634, Total Interest 22,377, Net Interest 8,756, Total Debt Service 91,257, Maximum Annual Debt Service 15,186, Average Annual Debt Service 10,656, Underwriter's Fees (per $1000) Average Takedown Other Fee Total Underwriter's Discount Bid Price Par Average Average PV of 1 bp Bond Component Value Price Coupon Life Duration change Serial Bond 68,880, % , ,880, , All In Arbitrage TIC TIC Yield Par Value 68,880, ,880, ,880, Accrued Interest + Premium (Discount) 13,754, ,754, ,754, Underwriter's Discount 133, , Cost of Issuance Expense 343, Other Amounts Target Value 82,501, ,157, ,634, Target Date 11/08/ /08/ /08/2017 Yield % % %

12 Nov 1, :09 pm Page 5 PROOF OF ARBITRAGE YIELD Present Value to 11/08/2017 Date Debt % 06/01/2018 1,942, ,923, /01/2018 1,722, ,690, /01/2019 1,722, ,676, /01/2019 1,722, ,661, /01/2020 3,257, ,116, /01/2020 1,683, ,597, /01/2021 3,293, ,097, /01/2021 1,643, ,532, /01/ ,543, ,520, /01/2022 1,345, ,233, /01/ ,835, ,573, /01/2023 1,033, , /01/ ,148, ,638, /01/ , , /01/ ,475, ,709, /01/ , , /01/ ,821, ,791, ,257, ,634, Proceeds Summary Delivery date 11/08/2017 Par Value 68,880, Premium (Discount) 13,754, Target for yield calculation 82,634,251.95

13 Nov 1, :09 pm Page 6 ESCROW DESCRIPTIONS Type of Type of Maturity First Int Par Max Security SLGS Date Pmt Date Amount Rate Rate Nov 8, 2017: SLGS Certificate 12/01/ /01/2017 1,837,957 SLGS Certificate 06/01/ /01/2018 9,497, % 1.260% SLGS Note 12/01/ /01/2018 1,021, % 1.420% SLGS Note 06/01/ /01/2018 9,854, % 1.500% SLGS Note 12/01/ /01/ , % 1.570% SLGS Note 06/01/ /01/ , % 1.640% SLGS Note 12/01/ /01/ , % 1.700% SLGS Note 06/01/ /01/ ,278, % 1.780% 82,157,415 SLGS Summary SLGS Rates File 24OCT17 Total Certificates of Indebtedness 11,335, Total Notes 70,822, Total original SLGS 82,157,415.00

14 Nov 1, :09 pm Page 7 FORM 8038 STATISTICS Dated Date 11/08/2017 Delivery Date 11/08/2017 Redemption Bond Component Date Principal Coupon Price Issue Price at Maturity Serial Bond: 06/01/2020 1,535, % ,683, ,535, /01/2021 1,610, % ,817, ,610, /01/ ,900, % ,781, ,900, /01/ ,490, % ,756, ,490, /01/ ,115, % ,810, ,115, /01/ ,770, % ,861, ,770, /01/ ,460, % ,922, ,460, ,880, ,634, ,880, Stated Weighted Maturity Interest Issue Redemption Average Date Rate Price at Maturity Maturity Yield Final Maturity 06/01/ % 17,922, ,460, Entire Issue 82,634, ,880, % Proceeds used for accrued interest 0.00 Proceeds used for bond issuance costs (including underwriters' discount) 476, Proceeds used for credit enhancement 0.00 Proceeds allocated to reasonably required reserve or replacement fund 0.00 Proceeds used to currently refund prior issues 0.00 Proceeds used to advance refund prior issues 82,157, Remaining weighted average maturity of the bonds to be currently refunded Remaining weighted average maturity of the bonds to be advance refunded

15 Nov 1, :09 pm Page 8 FORM 8038 STATISTICS Refunded Bonds Bond Component Date Principal Coupon Price Issue Price Transportation Excise Tax Revenue Bonds: SERIAL 06/01/ , % , SERIAL 06/01/2018 8,235, % ,981, SERIAL 06/01/ , % , SERIAL 06/01/2019 8,775, % ,631, SERIAL 06/01/ ,205, % ,134, SERIAL 06/01/ ,710, % ,561, SERIAL 06/01/ ,250, % ,015, SERIAL 06/01/ ,810, % ,495, SERIAL 06/01/ , % , SERIAL 06/01/ ,390, % ,008, ,610, ,066, Remaining Last Weighted Call Issue Average Date Date Maturity Transportation Excise Tax Revenue Bonds 06/01/ /01/ All Refunded Issues 06/01/

16 Nov 1, :09 pm Page 9 FINANCIAL ADVISOR DISCLOSURE Stifel, Nicolaus & Company, Incorporated ('Stifel') is providing the information for discussion purposes and is declaring that it has done so within the regulatory framework of MSRB Rule G 23 as a financial advisor, as defined therein, and not an underwriter to the issuer for this proposed issuance of municipal securities. A 'financial advisory relationship' shall be deemed to exist when a firm enters into an agreement to render financial advisory or consultant services to or on behalf of an issuer with respect to the issuance of municipal securities, including advice with respect to the structure, timing, terms and other similar matters. Accordingly, any services provided by Stifel as they relate to our role as financial advisor should not be construed as those of an underwriter or placement agent. These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and are subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or counsel as you deem appropriate.