REQUEST FOR PROPOSALS (“RFP”) FOR RENEWAL OF EXISTING LETTER OF CREDIT ON TAX-EXEMPT BONDS AND/OR DIRECT PURCHASE OF TAX-EXEMPT BONDS Required for use by: Illinois International Port District (IIPD)
All proposals and other communications must be addressed and returned to:
Mr. Anthony G. Ianello, Jr. Port District Executive Director Illinois International Port District 3600 East 95th Street 95th and the Lakefront Chicago, Illinois 60617-5193
PROPOSALS MUST BE RECEIVED NO LATER THAN 4:00 P.M., CENTRAL STANDARD TIME, ON November 30, 2012. MICHAEL K. FORDE CHAIRMAN
ANTHONY G. IANELLO, JR. EXECUTIVE DIRECTOR
Background of the Issuer and Timeline The Illinois International Port District (IIPD) is seeking proposals for either a renewal of its existing letter of credit on tax-exempt bonds or a direct purchase of tax-exempt bonds, either of which would be acceptable. IIPD background and financial information can be found on our website at www.IIPD.com. Firms interested in responding should direct your indications of interest via email at
[email protected] by Thursday November 15, 2012 and be prepared to have final proposals by Friday November 30, 2012. The accepted Letter of Credit on Tax-Exempt Bonds and/ or Direct Purchase of Tax-Exempt Bonds final documentation would need to be in place by December 28, 2012 and in force no later than January 31, 2013.
Banking Services Requested The role of the bank(s) selected will include, but not be limited to, the following: 1. Meet with the Issuer's financing team to gain an in-depth understanding of the Issuer’s objectives; 2. Work with the Issuer's financing team to develop a financing program that matches the Issuer’s objectives; 3. Presentation of structuring options with the Issuer’s Finance Committee/Board, and underwriter as requested; 4. Provide advice on the timing and closing date of the loan/bonds; 5. Participate in the preparation of legal documents, and if applicable, engage internal or external legal counsel; 6. Assist in the ratings process, if applicable; 7. In the event of a bank purchase sale, the ability to provide a term sheet that outlines covenant definitions, call features, amortization terms, and other relevant aspects of the banking relationship required; 8. Perform other duties as mutually agreed upon.
Proposal Requirements – Public Offering of Tax-Exempt Bonds through Direct Pay Letter-of-Credit (DPLOC) Replacement A. Primary Contact – Provide the name and contact information for personnel from your firm that will be assigned to the Issuer's transaction including all relevant staff member(s) responsible for dayto-day relationship, pricing, financial analysis or other relevant responsibilities. Please provide a brief resume for each team member. B. Scope of Services – Provide a clear, concise narrative, describing how your firm will respond to the scope of services set forth above. C. Firm Overview – Provide a brief description of your firm, including ownership structure, affiliate and subsidiary corporations and municipal and public funds departments.
D. Qualifications – Please provide a list of existing DPLOC transactions since 2005. In addition, please provide current rating agency short-term and long-term ratings for your bank’s DPLOC, including any changes over the last five years; E. Pricing - Please include DPLOC pricing and maximum interest rate commitments that would typically be found in your Reimbursement Agreements. F. References – Include the contact information for three references for whom similar DPLOC services have been performed. G. Disclosure – Disclose any professional or personal financial interest which could be a possible conflict of interest in performing credit enhancement services for the Issuer. Additionally, please describe any past (in the past three years) or present civil or criminal legal investigations, pertinent litigation and/or regulatory action involving your bank or its employees that could impact your role or ability to serve the Issuer. H. Fee – Prepare a upfront fee statement (if any) for providing the DPLOC services noted in this Request for Proposals. Present your proposed bank counsel fees and indicate if those fees are fixed or subject to change. I. Additional Information – Please provide any additional information that you feel will be helpful to the Issuer and the financial advisor in evaluating your qualifications with respect to the Scope of Services. Proposal Requirements – Bank Direct Purchase of Tax-Exempt Bonds A. Primary Contact – Provide the name, title, address, phone number, fax number, and email of the primary contact for your proposal. B. Scope of Services – Provide a clear, concise narrative, describing how your firm will respond to the scope of services set forth above. C. Firm Overview – Provide a brief description of the bank, including ownership structure, affiliate and subsidiary corporations and municipal and public finance departments. Please provide the bank’s capital structure. Provide the maximum amount of loan the bank is willing to make, and if the bank will want to pursue participations in the loan with other banks. D. Qualifications – Describe the bank’s general background and experience in providing financing for similar institutions during the last five years. List loans and direct pay letters of credit by date, type, size, and role. Identify the key personnel to be involved in the project and each individual’s background and experience.
E. Bank Loan Capabilities - Provide your bank’s timeframe for obtaining credit approval for the transaction. Also, provide your bank’s credit rating and rating outlook from all rating agencies. F. Plan of Finance – Provide a detailed plan of finance for the Issuer’s anticipated financing. Provide a detailed listing of annual fees, origination fees, and another other fees reasonably expected to be incurred in conjunction with the financing. Also, please include an estimate of a fee for the bank’s legal counsel, if any, for the transaction. Please provide the proposed interest rate or formula you will utilize to determine the interest rate on the loan as of [date]. Additionally, please specify the length of time your institution will hold the interest rate formula quoted above. Provide conditions of your proposal including any changes to interest rates. Please include your cash flows as an appendix to your proposal. G. References – Include the contact information for three references for whom similar loans have been performed for similar institutions in the last five years. H. Disclosure – Disclose any professional or personal financial interest which could be a possible conflict of interest in providing the loan to the Issuer. Additionally, please describe any past (in the past three years) or present civil or criminal legal investigations, pertinent litigation and/or regulatory action involving your firm or its employees that could impact your role or ability to serve the Issuer. I. Fee – Prepare a fee statement for providing the banking services noted in this Request for Proposals on a fixed rate fee basis. Please indicate an hourly rate for additional services, if required. J. Additional Information – Please provide any additional information that you feel will be helpful to the Issuer and the financial advisor in evaluating your qualifications with respect to the Scope of Services. K.
Deadline and Procedures for Submitting Proposals – A.
To be assured of consideration, Proposals must be received by the Executive Director no later than 4:00 p.m. Central Standard Time on November 30, 2012.
B.
Proposals must be delivered to the following address: Mr. Anthony G. Ianello, Jr. Port District Executive Director Illinois International Port District 3600 East 95th Street 95th and the Lakefront Chicago, Illinois 60617-5193
C.
Respondent must submit 1 hardcopy original, 5 duplicate hardcopies and 5 electronic copies in .pdf format on a CD-ROM of the Proposal. The original documents must be clearly marked as “ORIGINAL”, and must bear the original
signature of an authorized corporate agent on all documents requiring a signature. Respondent must enclose all documents in sealed envelopes or boxes. L. IIPD's Rights to Reject Proposals - The IIPD, acting through its Executive Director, reserves the right to reject any and all Proposals that do not conform to the requirements set forth in this RFP. If no Respondent is selected through this RFP process, then the IIPD may utilize any other procurement method available to obtain the Services described here.
