November 28, 2018 SUBJECT: SELECTION PROCESS FOR THE PERFORMANCE OF EXPERT PROFESSIONAL UNDERWRITING SERVICES FOR THE PORT AUTHORITY OF NEW YORK & NEW JERSEY DEBT OBLIGATIONS ON AN AS-NEEDED BASIS DURING 2019-2021 SELECTION PROCESS (RFP #53942) ADDENDUM #1 Dear Sir or Madam: We received the following questions in regards to the subject RFP: Question #1: The Authority's RFP response requirement formats listed in Section VC (page 5) include one (1) reproducible original and five (5) copies along with five (5) CDs, however, Section VD (page 6) references a USB drive Would the Port Authority prefer digital copies of the RFP response be submitted on CD or USB? If a USB is preferred, please confirm the quantity of USB sticks to be provided by the Respondent Answer: CDs are preferred Respondents may provide the electronic version of their Response on one (1) CD instead of providing five copies Question #2: In Section I: Background, the Authority asks Respondents to assume that 85% of the Authority's new money issuances will be tax-exempt (with the remaining 15% presumed to be Taxable) Can the Authority clarify whether the 85% would include both non-amt and AMT issuances? If so, can the Authority provide any additional assumptions to Respondents regarding what portion of the 85% is expected to be non-amt vs AMT? Answer: For the purposes of this RFS, Respondents could assume a 50/50 split Question #3: Can the Port Authority provide the cashflows (DBC numbers) from the Consolidated Bonds 210 and 211 Series? Answer: Yes, please see the attached cashflows (DBC numbers) from the Consolidated Bonds 210 and 211 Series 4 World Trade Center 150 Greenwich Street, 21 st Floor New York, NY 10007
If you have any questions, please contact Mr Timothy J Pullen at tpullen@panynjgov Sincerely, David Gutiérrez, CPPO Assistant Director Procurement Department - 2 -
CASH FLOW Report Sources and Uses of Funds Bond Summary Statistics Bond Pricing Bond Debt Service
SOURCES AND USES OF FUNDS Dated Date 08/29/2018 Delivery Date 08/29/2018 Consolidated Consolidated Bonds, Two Bonds, Two Hundred and Hundred and Eleventh Tenth Series Series Sources: (Taxable) (Tax-Exempt) Total Bond Proceeds: Par Amount 300,000,00000 400,000,00000 700,000,00000 Premium 49,125,10560 49,125,10560 300,000,00000 449,125,10560 749,125,10560 Note: Interest rates as of pricing on August 16, 2018
BOND SUMMARY STATISTICS Dated Date 08/29/2018 Delivery Date 08/29/2018 Last Maturity 09/01/2048 Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) NIC w/interest only NIC w/interest & OID NIC w/interest, OID & Und Discount All-In TIC Average Coupon Average Life (years) Weighted Average Maturity (years) Duration of Issue (years) Par Amount Bond Proceeds Total Interest Net Interest Bond Years from Dated Date Bond Years from Delivery Date Total Debt Service Maximum Annual Debt Service Average Annual Debt Service 3233534% 3940414% 4087871% 4356202% 4071975% 4087871% 3940414% 4356202% 24691 21877 15418 700,000,00000 749,125,10560 752,916,53676 706,538,80540 17,283,783,88889 17,283,783,88889 1,452,916,53676 113,868,59656 48,421,58427 Bid Price 106625390 Par Average Average PV of 1 bp Bond Component Value Price Coupon Life change 211th Series (Tax-Exempt) Serial Bonds 156,425,00000 116128 4845% 15907 146,79900 211th Series (Tax-Exempt) Term Bond 1 108,680,00000 103676 4000% 23084 92,37800 211th Series (Tax-Exempt) Term Bond 2 134,895,00000 114753 5000% 28103 124,10340 210th Series (Taxable) Term Bond 300,000,00000 100000 4031% 28320 502,38525 700,000,00000 24691 865,66565 All-In Arbitrage TIC TIC Yield Par Value 700,000,00000 700,000,00000 400,000,00000 + Accrued Interest + Premium (Discount) 49,125,10560 49,125,10560 49,125,10560 - Cost of Issuance Expense - Other Amounts Target Date 08/29/2018 08/29/2018 08/29/2018 Yield 3940414% 3940414% 3233534% Note: Interest rates as of pricing on August 16, 2018
BOND PRICING Maturity Yield to Call Call Premium Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) 210th Series (Taxable) Term Bond: 09/01/2044 70,615,000 4031% 4031% 100000 09/01/2046 73,460,000 4031% 4031% 100000 09/01/2047 76,420,000 4031% 4031% 100000 09/01/2048 79,505,000 4031% 4031% 100000 300,000,000 211th Series (Tax-Exempt) Serial Bonds: 09/01/2029 12,435,000 5000% 2660% 120437 C 2826% 09/01/2028 100000 2,541,34095 09/01/2030 13,060,000 5000% 2750% 119564 C 3042% 09/01/2028 100000 2,555,05840 09/01/2031 13,710,000 5000% 2810% 118985 C 3204% 09/01/2028 100000 2,602,84350 09/01/2032 14,395,000 5000% 2890% 118220 C 3359% 09/01/2028 100000 2,622,76900 09/01/2033 15,115,000 5000% 2940% 117744 C 3473% 09/01/2028 100000 2,682,00560 09/01/2034 15,875,000 5000% 3000% 117176 C 3581% 09/01/2028 100000 2,726,69000 09/01/2035 16,665,000 5000% 3040% 116799 C 3664% 09/01/2028 100000 2,799,55335 09/01/2036 17,500,000 5000% 3080% 116424 C 3738% 09/01/2028 100000 2,874,20000 09/01/2037 18,375,000 5000% 3110% 116144 C 3800% 09/01/2028 100000 2,966,46000 09/01/2038 19,295,000 4000% 3470% 104447 C 3684% 09/01/2028 100000 858,04865 156,425,000 25,228,96945 211th Series (Tax-Exempt) Term Bond 1: 09/01/2039 20,065,000 4000% 3560% 103676 C 3772% 09/01/2028 100000 737,58940 09/01/2040 20,870,000 4000% 3560% 103676 C 3772% 09/01/2028 100000 767,18120 09/01/2041 21,700,000 4000% 3560% 103676 C 3772% 09/01/2028 100000 797,69200 09/01/2042 22,570,000 4000% 3560% 103676 C 3772% 09/01/2028 100000 829,67320 09/01/2043 23,475,000 4000% 3560% 103676 C 3772% 09/01/2028 100000 862,94100 108,680,000 3,995,07680 211th Series (Tax-Exempt) Term Bond 2: 09/01/2044 24,410,000 5000% 3260% 114753 C 4137% 09/01/2028 100000 3,601,20730 09/01/2045 25,635,000 5000% 3260% 114753 C 4137% 09/01/2028 100000 3,781,93155 09/01/2046 26,915,000 5000% 3260% 114753 C 4137% 09/01/2028 100000 3,970,76995 09/01/2047 28,260,000 5000% 3260% 114753 C 4137% 09/01/2028 100000 4,169,19780 09/01/2048 29,675,000 5000% 3260% 114753 C 4137% 09/01/2028 100000 4,377,95275 134,895,000 19,901,05935 700,000,000 49,125,10560
BOND PRICING Dated Date 08/29/2018 Delivery Date 08/29/2018 First Coupon 03/01/2019 Par Amount Premium Production 700,000,00000 49,125,10560 749,125,10560 107017872% Note: Interest rates as of pricing on August 16, 2018
BOND DEBT SERVICE Period Ending Principal Coupon Interest Debt Service 09/01/2019 30,984,43472 30,984,43472 09/01/2020 30,813,25000 30,813,25000 09/01/2021 30,813,25000 30,813,25000 09/01/2022 30,813,25000 30,813,25000 09/01/2023 30,813,25000 30,813,25000 09/01/2024 30,813,25000 30,813,25000 09/01/2025 30,813,25000 30,813,25000 09/01/2026 30,813,25000 30,813,25000 09/01/2027 30,813,25000 30,813,25000 09/01/2028 30,813,25000 30,813,25000 09/01/2029 12,435,000 5000% 30,813,25000 43,248,25000 09/01/2030 13,060,000 5000% 30,191,50000 43,251,50000 09/01/2031 13,710,000 5000% 29,538,50000 43,248,50000 09/01/2032 14,395,000 5000% 28,853,00000 43,248,00000 09/01/2033 15,115,000 5000% 28,133,25000 43,248,25000 09/01/2034 15,875,000 5000% 27,377,50000 43,252,50000 09/01/2035 16,665,000 5000% 26,583,75000 43,248,75000 09/01/2036 17,500,000 5000% 25,750,50000 43,250,50000 09/01/2037 18,375,000 5000% 24,875,50000 43,250,50000 09/01/2038 19,295,000 4000% 23,956,75000 43,251,75000 09/01/2039 20,065,000 4000% 23,184,95000 43,249,95000 09/01/2040 20,870,000 4000% 22,382,35000 43,252,35000 09/01/2041 21,700,000 4000% 21,547,55000 43,247,55000 09/01/2042 22,570,000 4000% 20,679,55000 43,249,55000 09/01/2043 23,475,000 4000% 19,776,75000 43,251,75000 09/01/2044 95,025,000 ** % 18,837,75000 113,862,75000 09/01/2045 25,635,000 5000% 14,770,75936 40,405,75936 09/01/2046 100,375,000 ** % 13,489,00936 113,864,00936 09/01/2047 104,680,000 ** % 9,182,08676 113,862,08676 09/01/2048 109,180,000 ** % 4,688,59656 113,868,59656 700,000,000 752,916,53676 1,452,916,53676 Note: Interest rates as of pricing on August 16, 2018
BOND DEBT SERVICE Period Annual Ending Principal Coupon Interest Debt Service Debt Service 03/01/2019 15,577,80972 15,577,80972 09/01/2019 15,406,62500 15,406,62500 30,984,43472 03/01/2020 15,406,62500 15,406,62500 09/01/2020 15,406,62500 15,406,62500 30,813,25000 03/01/2021 15,406,62500 15,406,62500 09/01/2021 15,406,62500 15,406,62500 30,813,25000 03/01/2022 15,406,62500 15,406,62500 09/01/2022 15,406,62500 15,406,62500 30,813,25000 03/01/2023 15,406,62500 15,406,62500 09/01/2023 15,406,62500 15,406,62500 30,813,25000 03/01/2024 15,406,62500 15,406,62500 09/01/2024 15,406,62500 15,406,62500 30,813,25000 03/01/2025 15,406,62500 15,406,62500 09/01/2025 15,406,62500 15,406,62500 30,813,25000 03/01/2026 15,406,62500 15,406,62500 09/01/2026 15,406,62500 15,406,62500 30,813,25000 03/01/2027 15,406,62500 15,406,62500 09/01/2027 15,406,62500 15,406,62500 30,813,25000 03/01/2028 15,406,62500 15,406,62500 09/01/2028 15,406,62500 15,406,62500 30,813,25000 03/01/2029 15,406,62500 15,406,62500 09/01/2029 12,435,000 5000% 15,406,62500 27,841,62500 43,248,25000 03/01/2030 15,095,75000 15,095,75000 09/01/2030 13,060,000 5000% 15,095,75000 28,155,75000 43,251,50000 03/01/2031 14,769,25000 14,769,25000 09/01/2031 13,710,000 5000% 14,769,25000 28,479,25000 43,248,50000 03/01/2032 14,426,50000 14,426,50000 09/01/2032 14,395,000 5000% 14,426,50000 28,821,50000 43,248,00000 03/01/2033 14,066,62500 14,066,62500 09/01/2033 15,115,000 5000% 14,066,62500 29,181,62500 43,248,25000 03/01/2034 13,688,75000 13,688,75000 09/01/2034 15,875,000 5000% 13,688,75000 29,563,75000 43,252,50000 03/01/2035 13,291,87500 13,291,87500 09/01/2035 16,665,000 5000% 13,291,87500 29,956,87500 43,248,75000 03/01/2036 12,875,25000 12,875,25000 09/01/2036 17,500,000 5000% 12,875,25000 30,375,25000 43,250,50000 03/01/2037 12,437,75000 12,437,75000 09/01/2037 18,375,000 5000% 12,437,75000 30,812,75000 43,250,50000 03/01/2038 11,978,37500 11,978,37500 09/01/2038 19,295,000 4000% 11,978,37500 31,273,37500 43,251,75000 03/01/2039 11,592,47500 11,592,47500 09/01/2039 20,065,000 4000% 11,592,47500 31,657,47500 43,249,95000 03/01/2040 11,191,17500 11,191,17500 09/01/2040 20,870,000 4000% 11,191,17500 32,061,17500 43,252,35000 03/01/2041 10,773,77500 10,773,77500 09/01/2041 21,700,000 4000% 10,773,77500 32,473,77500 43,247,55000 03/01/2042 10,339,77500 10,339,77500 09/01/2042 22,570,000 4000% 10,339,77500 32,909,77500 43,249,55000 03/01/2043 9,888,37500 9,888,37500 09/01/2043 23,475,000 4000% 9,888,37500 33,363,37500 43,251,75000 03/01/2044 9,418,87500 9,418,87500 09/01/2044 95,025,000 ** % 9,418,87500 104,443,87500 113,862,75000 03/01/2045 7,385,37968 7,385,37968 09/01/2045 25,635,000 5000% 7,385,37968 33,020,37968 40,405,75936 03/01/2046 6,744,50468 6,744,50468 09/01/2046 100,375,000 ** % 6,744,50468 107,119,50468 113,864,00936 03/01/2047 4,591,04338 4,591,04338 09/01/2047 104,680,000 ** % 4,591,04338 109,271,04338 113,862,08676 03/01/2048 2,344,29828 2,344,29828 09/01/2048 109,180,000 ** % 2,344,29828 111,524,29828 113,868,59656 700,000,000 752,916,53676 1,452,916,53676 1,452,916,53676
Note: Interest rates as of pricing on August 16, 2018 BOND DEBT SERVICE