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San Antonio Water System Series 2007 Debt Disclosure Report
San Antonio Water System Series 2007 Debt Disclosure Report
San Antonio Water System Series 2007 Debt Disclosure Report
Table of Contents
City of San Antonio, Texas Water System Revenue Refunding Bonds, Series 2007
Costs of Issuance……………………………………………………………………………5
Revenue by Firm…………………………………………………………………………...7
City of San Antonio, Texas Water System Junior Lien Revenue and Refunding Bonds,
Series 2007
Costs of Issuance…………………………………………………………………………...11
City of San Antonio, Texas Water System Junior Lien Revenue and Refunding Bonds,
Series 2007A
Costs of Issuance…………………………………………………………………………..14
1
City of San Antonio, Texas Water System Revenue Refunding Bonds,
Series 2007
2
Sources and Uses
Sources
Par Amount of Bonds $ 311,160,000.00
Reoffering Premium 8,305,479.65
Accrued Interest 1,498,357.01
Transfers from Prior Issue Debt Service Funds 3,488,763.47
Planned Issuer Equity Contribution 25,000,000.00
Total Sources of Funds $ 349,452,600.13
Uses
Original Issue Discount (OID) $ 2,231,034.80
Total Underwriters' Discount 1,472,467.38
Cost of Issuance 675,000.00
Insurance Premiums 1,515,852.18
Deposit to Debt Service Fund 1,498,357.01
Deposit to Refunding Escrow Funds 342,056,137.74
Rounding Amount 3,751.02
Total Uses of Funds $ 349,452,600.13
3
Debt Service Requirements
Fiscal Year Total
Ended 12/31 Principal Coupon Interest Debt Service
4
Cost of Issuance
Financial Advisor
First Southwest Company, San Antonio, TX $ 109,434.13
Estrada Hinojosa & Company, San Antonio, TX 71,783.22
Legal Services
Bracewell & Giuliani LLP, San Antonio, TX 15,887.50
Rating Agencies
Fitch Ratings, New York, NY 52,666.99
Moody's Investors Services, New York, NY 55,281.45
Standard & Poor's Rating Services, New York, NY 52,649.00
Verification Agent
Grant Thornton LLP, Minneapolis, MN 6,500.00
Credit Enhancement
FGIC, New York, New York 1,515,852.18
Total $ 2,194,603.20
5
Summary of Underwriters' Discount
Per $1,000 Bond Total
Underwriting Expenses
Underwriters’ Counsel $ 0.30 $ 93,348.00
Day Loan 0.01 2,160.83
BMA Fee 0.04 10,890.60
Dalnet 0.08 23,617.00
DTC and Cusip Charges 0.00 828.00
MAC Fee 0.03 10,000.00
Miscellaneous 0.03 7,796.70
$ 0.48 $ 148,641.13
Underwriters' Counsel
McCall, Parkhurst & Horton L.L.P. San Antonio, TX
Escamilla & Poneck, Inc. San Antonio, TX
Underwriting Risk
Percent Risk
UBS Securities LLC, New York, NY 40.00%
Bear, Stearns & Co., Inc., New York, NY 20.00%
Apex Pryor Securities, Houston, TX 8.00%
Jackson Securities, LLC, Dallas, TX 8.00%
Morgan Keegan & Company, Houston, TX 8.00%
Popular Securities, Inc., San Antonio, TX 8.00%
SAMCO Capital Markets, San Antonio, TX 8.00%
100.00%
6
Revenue By Firm
UBS Securities LLC (Sr Mgr) $ 31,116.00 40.00% $ 515,017.72 41.33% $ 546,133.72 41.25%
Bear, Stearns & Co., Inc. (Co-Sr Mgr) 15,558.00 20.00% 289,870.13 23.26% 305,428.13 23.07%
Apex Pryor Securities 6,223.20 8.00% 138,871.88 11.15% 145,095.08 10.96%
Jackson Securities, LLC 6,223.20 8.00% 65,142.13 5.23% 71,365.33 5.39%
Morgan Keegan & Company 6,223.20 8.00% 161,250.63 12.94% 167,473.83 12.65%
Popular Securities, Inc. 6,223.20 8.00% 43,185.63 3.47% 49,408.83 3.73%
SAMCO Capital Markets 6,223.20 8.00% 32,698.13 2.62% 38,921.33 2.94%
$ 77,790.00 100.00% $ 1,246,036.25 100.00% $1,323,826.25 100.00%
Designation Policy
7
Summary of Orders and Allotments
Underwriter Total Orders Received
(000s) Member Priority Total Percent of Total
8
City of San Antonio, Texas Water System Junior Lien
Revenue and Refunding Bonds, Series 2007
Sources
Par Amount of Bonds $ 8,070,000.00
Total Sources of Funds $ 8,070,000.00
Uses
Cost of Issuance $ 41,666.26
TWDB Administrative Fee 146,583.00
Insurance Premiums 35,730.60
Deposit to Refunding Escrow Fund (TECP Refunding) 558,245.48
Deposit to Project Construction Fund 7,287,774.66
Total Uses of Funds $ 8,070,000.00
9
Debt Service Requirements
10
Cost of Issuance
Financial Advisor
First Southwest Company, San Antonio, TX $ 2,724.60
Estrada Hinojosa & Company, San Antonio, TX 10,000.00
Rating Agencies
Fitch Ratings, New York, NY 1,362.01
Moody's Investors Services, New York, NY 1,433.74
Standard & Poor's Rating Services, New York, NY 1,365.46
Credit Enhancement
XL Capital Assurance Inc., New York, New York 35,730.60
Total $ 86,939.85
11
City of San Antonio, Texas Water System Junior Lien
Revenue and Refunding Bonds, Series 2007A
Sources
Par Amount of Bonds $ 35,375,000.00
Total Sources of Funds $ 35,375,000.00
Uses
Cost of Issuance $ 85,676.23
TWDB Administrative Fee 642,550.00
Insurance Premiums 142,816.29
Deposit to Refunding Escrow Fund (TECP Refunding) 14,374,706.35
Deposit to Project Construction Fund 20,129,251.13
Total Uses of Funds $ 35,375,000.00
12
Debt Service Requirements
13
Cost of Issuance
Financial Advisor
First Southwest Company, San Antonio, TX $ 11,943.00
Estrada Hinojosa & Company, San Antonio, TX 4,665.31
Rating Agencies
Fitch Ratings, New York, NY 5,971.00
Moody's Investors Services, New York, NY 6,284.81
Standard & Poor's Rating Services, New York, NY 5,985.54
Credit Enhancement
XL Capital Assurance Inc., New York, New York 142,816.29
Total $ 241,098.27
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Appendix A
Average Takedown – The compensation associated with selling the bonds. This component fluctuates with market
condition.
BMA Fee – A nominal fee paid to the Bond Market Association for the support of the organization and to provide
funding for the Governmental Accounting Standards Board (GASB), which establishes standards of financial accounting
and reporting for state and local governments.
CUSIP – CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures, which assigns an
identification number to each maturity of an issue that is printed on the face of each certificate. CUSIP numbers are
intended to facilitate the clearance and identification of municipal securities. CUSIP charges a nominal fee for assigning
an identification number.
Dalnet – Dalnet is a communications system that relays messages and pricing information between the senior managing
underwriter and the co-managing underwriters on both competitive and negotiated sales. Dalnet charges a nominal fee
for providing information on new issues.
Day Loan – An interim loan between the clearing agent and the senior managing underwriter enabling the senior
managing underwriter to provide funds at delivery, prior to receiving funds from co-managing underwriters for their
participation in the transaction. The senior managing underwriter will seek to be reimbursed by the issuer for the interest
on the day loan.
DTC – DTC is an acronym for the Depository Trust Company which is a clearing agency registered with the Securities
and Exchange Commission (SEC) to provide book-entry only registration, clearing, comparison, and settlement of
municipal securities transactions to its members, who are dealers, dealer banks and brokers. Book-entry only registration
facilitates the transfer of ownership of securities by providing electronic, rather than physical, record of ownership. DTC
charges a nominal fee for registering securities in book-entry only form.
Management Fee – The compensation associated with sizing and structuring the issue. This component may be
eliminated or reduced in instances where the financial advisor assumes the primary banking responsibilities for designing
and executing the financing.
Texas MAC – Texas MAC is an acronym for the Municipal Advisory Council of Texas, which is a trade organization of
companies that provide financial advisory and/or underwriting services for issues in Texas. As part of its services, MAC
publishes the Texas Municipal Reports, which describe the finances of issuers in Texas, and serves as the State
Information Depository (SID) for receiving continuing disclosure information from issuers in Texas. MAC is funded, in
part, by assessments on members for new issues.
Underwriters’ Counsel – An attorney retained to represent the interests of the underwriters in connection with the
purchase of new issues of municipal securities. The duties of the underwriters’ counsel may include review of the
issuer’s bond resolution or ordinance and documentation, review of the official statement to determine adequacy of
disclosure, negotiation of the agreement among underwriters, and preparation of the due diligence opinion.
Underwriting Risk – The compensation associated with an underwriter’s liability during the offering of an issue. This
component may be eliminated, if all of the bonds are sold during the order period, otherwise, it is typically not a large part
of the discount.
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