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City of Hartford Debt Service Profile March 23, 2015.

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Presentation on theme: "City of Hartford Debt Service Profile March 23, 2015."— Presentation transcript:

1 City of Hartford Debt Service Profile March 23, 2015

2 Hartford Debt Profile The City of Hartford financed new money $82,000,000 General Obligation (GO) Bonds and $50,000,000 General Obligation Bond Anticipation Notes in October, 2014. The City received a record-low true interest cost (TIC) of 3.112% and a record-low all-in TIC of 3.154%. The City then issued GO refunding bonds in November, 2014 to currently refund its outstanding Series 2003 Bonds and advance refunded its eligible Series 2007 Bonds. The refunding achieved a total PV savings rate of 3.716% and saved the City nearly $1.5 million over the next 12 fiscal years. The City previously issued GO refunding bonds in April, 2013 to advance refund all eligible bonds due in fiscal years 2014 through 2018. The refunding generated over $56.5 million in budgetary savings through fiscal year 2018 with a TIC of less than 3.500%. In January, 2015, the City created the Hartford Stadium Authority to issue lease revenue bonds to finance a portion of the construction costs to build a minor-league baseball stadium in the Downtown North area. The annual debt service of these bonds is approximately $4.265 million. The City has an outstanding debt profile of $475,190,000 as of March 23, 2015. Of those bonds, $175,140,000 are advance refundable and callable, while an additional $92,080,000 are eligible for redemption when currently callable. Overview 1

3 Hartford Debt Profile Current Debt Service 2

4 Hartford Debt Profile Current Debt Service by Refunding Status 3

5 Hartford Debt Profile Current Principal by Refunding Status 4

6 Hartford Debt Profile Current Debt Service by Series 5

7 Hartford Debt Profile Current Principal by Series 6

8 Municipal to Treasury Yield Ratios 10-Year Maturity Over the Previous 12 Months Note: Reflects market conditions as of March 20, 2015 Source: Municipal Market Data and Bloomberg Information Systems 1.94% 2.00% 10-Yr AAA MMD 10-Yr Treasury Historical Average 10-Yr Ratio %Time 10 Year Treasury Yield Lower %Time 10 Year Maturity Ratio Lower 8

9 Notice and Disclaimer William Blair & Company 100 Great Meadow Road, Suite 606 Wethersfield, Connecticut 06109 www.williamblair.com Contact Information: Richard W. Thivierge Managing Director rthivierge@williamblair.com Phone: (800) 596-2028 Fax: (860) 571-5865 Kevin O’Kelly Associate kokelly@williamblair.com Phone: (800) 621-0687 Fax: (312) 236-0174 Per MSRB Rule G-17 and the SEC Municipal Advisor Rule, William Blair & Company, L.L.C. (“the Firm”), in its capacity as an underwriter of municipal securities, is not recommending an action to you as the municipal entity or obligated person. The information provided is not intended to be and should not be construed as “advice” within the meaning of Section 15B of the Securities Exchange Act of 1934. This information is being provided for discussion purposes, and you should discuss any information and material contained in this communication with any and all internal or external advisors and experts that you deem appropriate before acting on this information or material. Unless otherwise agreed, the Firm is not acting as a municipal advisor to you and does not owe a fiduciary duty pursuant to Section 15B of the Exchange Act to you with respect to the information and material contained in this communication. In our capacity as underwriter, our primary role will be to purchase the securities as a principal in a commercial, arms’ length transaction, and we will have financial and other interests that differ from yours. The accompanying information was obtained from sources which the Firm believes to be reliable but does not guarantee its accuracy and completeness. The material has been prepared solely for informational purposes and is not a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. Historical data is not an indication of future results. The opinions expressed are our own unless otherwise stated. Additional information is available upon request. 8


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