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Method of SalelPlacement:. Ill.ordcr to obtain flit: iowe.tit irtte.res:t ao5t to the City, we will cotn.petitively bid
<br />I the purullase of 1110 Lac nd', froln lmal and national mider,".-ri.ters.
<br />We have irlc:lLicfed an allcrIvnittie Iur clkeouht bidding equal to 1.20% of the
<br />prillCtpitl M1101111t 01 113E [S_SUC. 111e rlkti -OLII}I. is tre.:lled as an interest item and
<br />provides the uncle -►\filter ivltli €ill or a .lclrlioll of iltcir crlllipensation in the
<br />transaction.
<br />If the .Bonds are purcha.,tel at a price ,rc:tter 11)at1 tale mibimtim bid arnonnt
<br />(maxinitim disCOunt). .Il}c 1111t1aei1 UISUP,,}I}t< 1na_, be used to lower your
<br />borrowing arnouni.
<br />Premium Bids: lalilef' CUrreiv. rnattkc[ coni.1rion , ;'r7U t titt'C tl)r5 Ill municipal
<br />bonds pt;cfer "premium" prwin;, strucitti,es. A prclnhaii. is achieved when the
<br />coupon for any niaturit.v (the interc;f r,ttr nai(l h\ the issuer} eXteeris the.ti°field.
<br />to the investor, rc. ulriml tit a pr1,:c p:141 ?fiat i ;i_—w'n€er tli:lr1 the face value of
<br />the bonds.. '1lie suns of the ;llll1.,w11-. raid in is ccs,S c,l face �aklt is considered
<br />"a"CoNring premilln1.'•
<br />The amount of Eh+: preiltiuill t ariks; but it k not uI]ci}I71ItiU11 it) see prellli.tlm5
<br />for new issues ill. tilt'. tailoc' .o 2,00`: , to 10.of..l 1-0 tilt t-ice amount. Of the
<br />issue. This means t11:11 in is; tier' tt itli .i .`�'.000 000 offering may receive bits
<br />that result in proceed, oCK,040.00() 14.) S"?(1il,t)i!(l.
<br />For this issue ol'tiinds we fvive been (lirectecf t,) Lt.�c tl?t* preinium to reduce
<br />the si e.of the .is tle, 'The atijti:,tlnt nt:c nla\ rhiJ7tly chrlrttie the true interest
<br />COSt t).t file bl'tglllai bid. eiiltr r up or do It.
<br />You llave the cll()ice tO lictrit the al"01,1111 of prcmiurr} in the bid
<br />specifications. This lift re�,tlll in 1*_v.cr bids, but it ina .Ilse eiintin;3te lal'be
<br />adjustlitents on the clad' or.s,ikc itnci o:iier tlrtcert�tir►ties.
<br />Review of Existing Debt: f W have reviewLA till oL11.51.it�lflll illtltt7tccftli s Im, the City anti• find that..
<br />i other than the ohlioauons pr,. pot elf tL, i1c:.rQftllldcd 1-v the I3ondl. there are no
<br />other refunding opportunitiL: al aii� time.
<br />We Will continue to flior►ilor the Mal et and the call dates i'or Ilse City's
<br />otitstanding debt and wiltalert-c,tt.lo ally' R11.1.Ire rtEL1f1di1l,,. 0171I.011U111ties.
<br />1
<br />Continuing Disclosure: ` Because tile tuno.tlnt of tile. lloq, , w he i.ssmd is less thall S 1,000:000. this
<br />issue will he :exempt from till. C. cmiirwinl i C)it.cl()sclre requirements of the
<br />Securities and E:.schanae C otitimission i,),1 .C).
<br />f
<br />Arbitrage Monitoring: ( BCQause lllc. tiliticl!� are ta.x-i kt;tlpt ,tt'tls ilws`lax Lrcciil <trlli'ities, the
<br />111USt eFISUI-C C0111phallcc, '.t lt.ft ctrt:1111 Inlcmal Rel ellLle t;ervic,• (IRS) .alles
<br />thro.tachoin the lire ofthe J;klc, `1'he,c rut: s apply to all L.r 1 s proceeds of.the.
<br />issue, including; inilial boild procc'.eds and imc<tment L,trninS_ , in construction.,
<br />escrow. debt SffViCt_ .11 d ar:\ res t'rv,_ funds, i lcn.\ is�.Uer.s spend bond
<br />proceeds and Jim\ they track irate►•c,.:t e:u'ning.s 0.r1 fLtlids (arbitragely icld
<br />restriction compliallce) arc c,}ltllrlon sul:liccl, ol`IRS inquiries. Your specific
<br />responsibilities will be detail,—d ill the Ti3x C erti .i.catc prepared by your Bond
<br />ff Atto:rrle..y and provided at ;losil1i-,.
<br />Presale Reportn LaAprif:21, 2015
<br />�"' City of terke, MinnesotaPage.2
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