Post-Pricing Information Unlimited Tax Refunding Bonds, Taxable - - PowerPoint PPT Presentation

Post-Pricing Information – Unlimited Tax Refunding Bonds, Taxable Series 2019 Tuesday, November 5, 2019

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Post-Pricing Summary – Series 2019 Refunding Bonds

 Introduction: This material provides a summary of the sale results for Northwest Independent School District’s (“NISD” or the “District”) Unlimited Tax Refunding Bonds, Taxable Series 2019 (the “Series 2019 Refunding Bonds”) issued to refund a portion of NISD’s existing bonds at a lower interest rate.  Summary of Refunding Program Results:  Based upon favorable bond market conditions on Thursday, October 31, 2019, the District successfully sold its Series 2019 Refunding Bonds at an “All-In” True Interest Rate of 2.85% and NISD’s actual savings totaled $17,306,582 (net of all costs) – Which was $4,137,465 higher than the savings presented to the Board of Trustees at its September 23, 2019 meeting.

Summary of Savings – Final Results – Series 2019 Refunding Bonds

Description Final Results Principal Amount of Refunded Bonds $ 96,760,000 Interest Rate on Existing Refunded Bonds 4.95% “All-In” True Interest Rate – Series 2019 Refunding Bonds 2.85% Total Savings to the District (Net of Costs) $ 17,306,582 Net Present Value Debt Service Savings (@ All-In TIC) 13,322,054 Present Value Savings as a Percentage of the Principal Amount

• f the Refunded Bonds

13.77%

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Investor Bonds Purchased % of Total Bonds State Farm Insurance Companies 18,660,000 $ 19.0% Vining Sparks IBG, LP 12,415,000 12.7% Unum Group 11,750,000 12.0% Performance Trust 9,500,000 9.7% FTN Financial Capital Markets 4,000,000 4.1% Asset Allocation & Management Company 3,090,000 3.1% VeraBank 3,000,000 3.1% Retail Investors 2,900,000 3.0% Auto-Owners Insurance 2,500,000 2.5% Sisung Investment Management Services 2,000,000 2.0% Top 10 Totals 69,815,000 $ 71.2%

Top 10 Investors - Series 2019 Refunding Bonds Investors by Account Type – Series 2019 Refunding Bonds

Summary of Bond Underwriting Process – Series 2019 Refunding Bonds

 Prior to entering the market with NISD’s Series 2019 Refunding Bonds, 3 Texas school districts (Katy ISD, Lubbock ISD and Barbers Hill ISD) had already priced over $300 million of “taxable” PSF-guaranteed bonds that week, providing a “road map” for the District’s bond sale. With a Federal Reserve rate cut announcement looming, the District’s underwriting syndicate elected to pursue an aggressive pricing strategy to achieve interest rates that were commensurate or below these comparable bond sales.  The “aggressive” pricing strategy, coupled with skepticism surrounding the U.S. and China reaching a trade deal which sent “taxable” yields sharply lower, ultimately served the District well, as NISD achieved the lowest interest rates of all comparable Texas school districts that sold “taxable” bonds during the week.  The District’s Series 2019 Refunding Bonds were initially sold to 14 diverse institutional investors.

Bank Portfolios 4.6% Insurance Companies 33.5% Investment Managers, SMAs, Trust Accounts 16.6% Retail 3.0% Proprietary Accounts 17.9% Underwriting Team 24.4%

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Savings from District’s Recent Bond Refunding and Prepayment Programs to Lower Interest Costs

 Since year 2015, Northwest ISD has implemented 7 refunding programs and prepaid $4.1 million of existing bonds to reduce the cost of voter-approved bonds – Which have generated $100,697,506 of savings for District taxpayers! Summary of Interest Cost Savings – Bond Refunding Programs / Prepayment of Bonds

Issue / Description Series Refunded / Redeemed Par Amount Refunded / Redeemed Total Savings Unlimited Tax Refunding Bonds, Series 2015 2007 93,310,000 $ 15,395,575 $ Unlimited Tax Refunding Bonds, Series 2015A 2005, 2008, 2009, 2010 143,595,000 22,766,381 Unlimited Tax Refunding Bonds, Series 2015B 2006 93,055,000 13,904,656 Unlimited Tax Refunding Bonds, Series 2016 2008, 2009, 2010 51,560,000 10,748,113 Unlimited Tax Refunding Bonds, Series 2016A 2010, 2011 68,215,000 14,048,564 Prepayment of Series 2008 Bonds - June 2017 2008 4,100,000 1,930,660 Unlimited Tax Refunding Bonds, Series 2017 2012 30,290,000 4,596,975 Unlimited Tax Refunding Bonds, Taxable Series 2019 2012, 2013-A, 2013 96,760,000 17,306,582 Totals 580,885,000 $ 100,697,506 $

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Overview of Financing Team Members – Series 2019 Refunding Bonds

Overview of Financing Team Members – Series 2019 Refunding Bonds

Issuer: Northwest Independent School District Financial Advisor: Hilltop Securities Inc. Bond Counsel: McCall, Parkhurst & Horton L.L.P. Paying Agent: UMB Bank Rating Agencies: Moody’s Investors Service, Inc. Fitch Ratings, Inc. Underwriters: ■ Senior Manager: BOK Financial Securities, Inc. ■ Co-Manager: Piper Jaffray & Co. ■ Co-Manager: Raymond James & Associates, Inc. ■ Co-Manager: RBC Capital Markets Underwriters’ Counsel: Norton Rose Fulbright US LLP