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Request for Qualifications – Underwriting Services – Lancaster County Convention Center Authority – Federally Taxable 2022 A Bonds and Tax-Exempt 2022 B Bonds

Ladies & Gentlemen:

FSL Public Finance, LLC (“FSL”) has been engaged as the financial advisor to the Lancaster County Convention Center Authority (the “Authority”).  The Authority is soliciting responses to the attached Request For Qualifications (“RFQ”) in connection with the anticipated issuance of its issuance of its Federally Taxable Hotel Room Rental Tax Revenue Bonds, Series A of 2022 (the “2022 A Bonds”) and its Hotel Room Rental Tax Revenue Bonds, Series B of 2022 (the “2022 B Bonds”, and together with the 2022 A Bonds, the “2022 Bonds”). 

The 2022 A Bonds (federally taxable) are expected to be issued in the par amount of approximately $18,280,000 and is expected to amortize through May 1, 2037.  The 2022 Bonds will be used to (i) terminate the two outstanding interest rate swap agreements with Wells Fargo; (ii) fund a portion of the expected debt service reserve fund; and (iii) pay the costs of issuing the 2022 A Bonds.

The 2022 B Bonds (tax-exempt) are expected to be issued in the par amount of approximately $53,765,000 and will amortize through May 1, 2057.  The 2022 Bonds will be used to (i) currently refund the Authority’s outstanding Hotel Room Rental Tax Revenue Bond, Series of 2014; (ii) fund a portion of the expected debt service reserve fund; and (iii) pay the costs of issuing the 2022 B Bonds.

For purposes of the RFQ responses please assume that the County of Lancaster, Pennsylvania (the “County”) will be providing a guarantee based on the County’s full faith credit and taxing power to the replenishment of the debt service reserve fund for as long as the 2022 Bonds are outstanding – the County is currently rated Aa2 (Stable Outlook) from Moody’s.  The Debt Service Reserve Fund securing the 2022 Bonds will initially be funded in full by a portion of the proceeds of the 2022 Bonds.  Please assume the guarantee from the County will be substantially similar to the guaranty currently provided by the County to the replenishment of the debt service reserve fund securing the Authority’s outstanding Hotel Room Rental Tax Revenue Bonds, Series of 2014 (to be refunded in full by the 2022 Bonds).  The amount of the Debt Service Reserve Fund and the County’s Guarantee will equal the combined maximum debt service on the 2022 A & B Bonds.  A copy of the County’s current guarantee agreement is also attached to this email for review.

All proposals are due by 5:00 pm (EST) on Friday April 29, 2022.  Please direct all questions with respect to the RFQ in writing to Michael Vind at michael.vind@fslpf.com no later than Friday April 22, 2022.  We look forward to your responses to the RFQ.

Mike

Michael D. Vind | Managing Director

FSL Public Finance, LLC

RFQ Underwriting Services – Lancaster County Convention Center Authority (2022 A & B Bonds)

County Guarantee

LCCCA Note

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