Request for Proposals (RFP)
To: Prospective Loan Providers
From: Larry Fox, Business Manager, Educational Service Unit #9, Hastings, Nebraska
Re: Educational Service Unit #9, Hastings, Nebraska ‐‐ Request for Bank Loan Proposals (RFP)
Educational Service Unit No. 9 (ESU#9) is seeking proposals to obtain a Bank Qualified term Loan, as that term is defined and used under the Internal Revenue Code, (the “Loan”) in the form of a Tax Anticipation Note pursuant to the authority granted by Neb. Rev. Stat. §79-1244 The total principal amount of the Loan will depend on financing options selected, but will not exceed $650,000. The purpose of the Loan will be to finance a new building for ESU#9 to be located at 5807 Osborne Drive West, Hastings, Nebraska 68901.
The Lender will be selected based on overall borrowing cost and terms most favorable to ESU#9, based on ESU#9’s sole discretion. The Loan will be a private placement and ESU#9 is not preparing an offering statement with respect to the Loan.
Amounts due under the Loan will be secured only by a covenant to annually budget and appropriate from legally available revenues of ESU#9 in an amount necessary to pay the outstanding principal and accrued interest on the Loan after satisfying funding obligations with respect to essential services of ESU#9 in accordance with the laws of the State of Nebraska.
Other key terms as follows:
- Loan repayment amortized over a 20 year term.
- Term: 2 years, with maturity on 9/1/2019 and with balloon payment subject to refinancing of any balance due.
- No prepayment penalty.
- Payment Frequency: Annually on August 31 of each year – .
- Loan Closing: On or about September 1, 2017.
Please complete the payment schedule, Appendix “A” below as part of your proposal.
ESU#9 is requesting proposals be submitted by Monday, August 21, 2017 at 1:00 pm CDT to the following email address: email@example.com. Hard Copies must be delivered by no later than 1:00PM CDT to 1117 East South St, Hastings, NE 68901. The proposal shall include the following:
- Interest Rate Fixed to Maturity based on proposed terms and payment frequency on a bank qualified basis.
- Prepayment without penalty.
- Other Fees and Expenses of the Proposer.
- Other Provisions required by the Proposer – ESU#9 desires a fixed rate Term Loan without capital adequacy or other rate adjustment Any proposal with rate adjustment language should clearly state the circumstances (other than a determination of taxability) under which the rate could be adjusted and provide the adjusted rate or formula for determining the adjusted interest rate such that the adjusted rate, if subsequently applied, can be determined at the time of closing. Determination of taxability must only be based upon a final non appealable ruling by the IRS.
Any inquiries or requests concerning clarification or solicitation for additional information shall be submitted to ESU#9’s Business Manager, Larry Fox, 1117 East South Street, Hastings, NE 68901; email firstname.lastname@example.org.
The successful proposer will be required to deliver certain certificates at closing including one to the effect that they are a sophisticated investor having knowledge and experience in financial and business matters and are capable of evaluating the merits and risks of lending funds to ESU#9, that they have had access to and have reviewed such information concerning ESU#9 as they have deemed necessary, that they understand the Loan is not a unlimited general obligation of ESU#9, but is payable solely by the revenues to be described in the documentation relating to the Loan, that they are not relying on disclosures from ESU#9 and that they are entering into the Loan Agreement for their own accounts and not with a view to resale or redistribution. The Loan Agreement may not be assigned.
ESU#9 RESERVES THE RIGHT TO REJECT ANY OR ALL PROPOSALS AND RESERVES THE RIGHT TO WAIVE ANY IRREGULARITY OR INFORMALITY IN ANY PROPOSAL.