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Finance Committee Agenda 06/19/2019 Finance Committee Agenda June 19, 2019 County Manager’s Front Conference Room 3:00 p.m. 1. Call to order 2. Approval of Agenda (meeting noticed on June 12, 2019) 3. Approval of Minutes from May 17, 2019 Meeting 4. Golden Gate Golf Course “RFQ” Taxable Special Obligation Revenue Note, Series 2019 5. Other Business 6. Public Comment 7. Adjourn – Next Meeting – TBD Collier County Government Communication & Customer Relations 3299 Tamiami Trail East, Suite 102 Naples, FL 34112-5746 colliergov.net twitter.com/CollierPIO facebook.com/CollierGov youtube.com/CollierGov June 12, 2019 FOR IMMEDIATE RELEASE NOTICE OF PUBLIC MEETING COLLIER COUNTY FINANCE COMMITTEE COLLIER COUNTY, FLORIDA WEDNESDAY, JUNE 19, 2019 3:00 P.M. Notice is hereby given that the Collier County Finance Committee will meet Wednesday, June 19, at 3:00 p.m. in the County Manager’s Front Conference Room, second floor, Collier County Government Center, 3299 Tamiami Trail East, Naples, Fla. About the public meeting: Two or more members of the Board of County Commissioners may be present and may participate at the meeting. The subject matter of this meeting may be an item for discussion and action at a future Board of County Commissioners meeting. All interested parties are invited to attend, and to register to speak. All registered public speakers will be limited to three minutes unless permission for additional time is granted by the chairman. Collier County Ordinance No. 2004-05 requires that all lobbyists shall, before engaging in any lobbying activities (including, but not limited to, addressing the Board of County Commissioners, an advisory board or quasi-judicial board), register with the Clerk to the Board at the Board Minutes and Records Department. Anyone who requires an auxiliary aid or service for effective communication, or other reasonable accommodations in order to participate in this proceeding, should contact the Collier County Facilities Management Department located at 3335 Tamiami Trail East, Naples, Florida 34112, or (239) 252-8380 as soon as possible, but no later than 48 hours before the scheduled event. Such reasonable accommodations will be provided at no cost to the individual. For more information, call Mark Isackson at (239) 252-8973. ### APPROVED FINAL COLLIER COUNTY FINANCE COMMITTEE MEETING MINUTES May 17, 2019, 10:00 A.M. Board members in attendance: Mark Isackson, Corporate Financial Operations CMO; Crystal Kinzel, Clerk of the Circuit Court and Comptroller; Joe Bellone, Director of Operations Support-Public Utilities; Gene Shue-Growth Management Operations Support Director; Susan Usher, Senior Budget Analyst OMB. Other attendees: Derek Johnssen-Clerk of Courts Finance Director; Jeff Klatzkow-County Attorney; Nick Casalinguida-Deputy County Manager; Laura Zautcke-OMB Senior Budget Analyst; Jim Gibson. Present by phone: Pete Varona and Nicklas Rocca from the PFM Group; Steve Miller from Nabors, Giblin & Nickerson 1. Call to Order: Mark Isackson called the meeting to order at 10:07 a.m. 2. Approval of Agenda: Meeting noticed May 6, 2019. Motion to approve agenda. Crystal seconded. Unanimously approved. 3. Approval of Minutes from November 20, 2018 meeting: #4 second sentence, change “logs” to “lags”; #5 title change “approve” to “approval”. Mark made motion to approve minutes. Crystal Kinzel mentioned minor changes and Joe Bellone seconded. Unanimously approved. 4. General Governmental Capital Planning and Funding (attachment): Committee discussed PFM’s future capital planning and funding PowerPoint. The information covered several general governmental capital projects which will require funding and are not covered by the local option infrastructure sales tax. Near term financing will be required to buy the Golden Gate Golf Course while projects like bridges, roads, and stormwater are generally considered at least 18-24 months off. After discussion, the committee agreed that PFM representatives should structure an “RFQ” document to solicit proposals on a fixed rate taxable term loan in an amount not to exceed $29,000,000.00 in order to fund acquisition of the Golden Gate Golf Course. Mark will reconvene the committee to review and discuss the submittals. The taxable nature of the financing is due to the likelihood that taxable uses may be developed on portions of the property. 5. Pelican Bay MSTBU Financing (attachment): Committee members were briefed on the potential asset swap between Collier County and the Pelican Bay Services Division whereby the Services Division would take over and be responsible for assets like sidewalks, drainage, bridges, etc. in exchange for County consideration. County Attorney Jeff Klatzkow reminded the Committee that from an organizational standpoint, the County and Pelican Bay Services Division are essentially the same entity. As a result, any financing which pledges assessment revenue could pose concerns logistically because these assessments are set annually by the Board of County Commissioners. The other financing option is a pledge of property tax revenue which requires a referendum of the district. The Board of County Commissioners will hear the matter initially at the June 20th budget hearing. APPROVED FINAL 6. Other Business (attachment): Moody’s March 2019 credit option covering the Collier County Water-Sewer District and Collier County general corporate issuer rating was attached for information purposes only. 7. Other Business: None. 8. Public Comment: None 8. Adjourn: Meeting adjourned at 11:30 a.m. Motioned by Mark Isackson and seconded by Susan Usher. Unanimously approved. Next meeting TBD. 2222 Ponce de Leon Boulevard Third floor Coral Gables, FL 33134 786-671-7480 www.pfm.com June 13, 2019 Memorandum To: Collier County, Florida From: PFM Financial Advisors LLC Re: Method of Sale Recommendation – Taxable Special Obligation Revenue Note, Series 2019 The purpose of this memorandum is to briefly summarize the proposals received from lending institutions to provide Collier County, Florida (the “County”) with a fixed-rate loan in the form of a Taxable Special Obligation Revenue Note, Series 2019 (the “Note”) and summarize the recommendation of PFM Financial Advisors LLC (“PFM”) to move forward in order to fund the capital projects designated in the series resolution. On May 29 PFM, on behalf of the County, distributed a request for proposals to a broad pool of lenders that are active in municipal lending. PFM’s recommendation to proceed with a loan in the form of a Note relies upon the facts that: (1) the credit is well understood by market participants and would attract a wide response; (2) the anticipated useful life of the projects and associated term of the loan are short (approximately 10-12 years); (3) the relatively manageable size of the loan request (approximately $29 million) was better suited for a direct placement that limited the administrative burden and costs of issuance. For these reasons, PFM recommended that this particular request would attract interest from the bank lending community and yield the County with a favorable result. On June 12th, six (6) proposals were received. A full summary of the proposing firms (in alphabetical order), along with a brief summary of the key points from each proposal is included in the matrix attached to this memorandum. Based on the responses received, the two lowest interest rate proposals were received from TD Bank and JP Morgan. A short summary of the provisions found in each response is provided as an appendix to this memorandum. • TD Bank – 2.74% / 2.80% indicative rate, 10 / 12-year term, respectively. TD provided for the option to hold the interest rate until expected closing date if the proposal is accepted by June 14, 2019. TD requires: an anti-dilution test of 1.50x, which is consistent with the covenant for the current non-ad valorem debt for the County; cross-default with all other CB&A debt of the County. Prepayment option is a make- whole call, although the County has the option of paying an additional 42 bps for no prepayment penalty at any time. • JP Morgan – 2.87% / 2.97% indicative rate, 10 / 12-year term, respectively. JP Morgan provided for the option to hold the rate until expected closing with execution of a rate lock agreement. Required an anti-dilution test of 1.50x, which is consistent with current non-ad valorem debt for the County. Prepayment option is a make-whole call, though various other options are available for increased interest rates. At this time, PFM recommends moving forward with the note with TD Bank. Our recommendation is based on the fact that TD Bank offered the full term and loan amount requested, and had the most advantageous indicative rate and terms of all the proposals. Based on the proposal received, PFM has provided a brief summary of relevant bond statistics in the table below for the County’s consideration. TD Bank Proposal Statistic 10-Year Amortization 12-Year Amortization All-in TIC 2.79% 2.84% Average Annual DS 3,315,000 2,875,000 Total DS 33,885,000 35,135,000 June 13, 2019 Page 2 of 2 We believe the results of this proposal are generally consistent with what a similarly priced competitive public offering would have yielded. It’s also important to consider that this method yielded six proposals, which implies a competitive process was achieved. In closing, the key benefits of this type of structure, in addition to the economic results, are the significant reduction in costs of issuance as well as administrative time. We look forward to continuing to work towards a successful closing for the Note. Please do not hesitate to contact us should you have any questions on the details of the included response matrix. Collier County, FLBank Loan RFP SummaryProposal RequirementsContact InformationNot to Exceed Par AmountCredit Facility$10,000,000 $12,000,000Final Maturity10/1/2029 10/1/2031 10/1/2029 10/1/2031 10/1/2029 10/1/2031Taxable Interest RateFixed: 3.60% Fixed: 3.69% Indicative: 3.26%Indicative: 3.37% Fixed: 4.25% Fixed: 4.35%Interest Rate Formula10 year treasury rate yield + 111bps10 year treasury rate yield + 122bpsRate Locked to Closing, or Date to be setPrepayment OptionsNo call until October 1, 2024, then in whole at par on any interest payment dateNo call until October 1, 2025, then in whole at par on any interest payment dateLegal/Other FeesOther Conditions & Notes$7,500 (legal) + $2,450 (Standard state taxes doc stamps)1) Subject to final credit approval2) A covenant to budget and appropriate sufficient non-ad valorem revenues to service the debt 1.5x3) County shall agree to anti-dilution requirements per the RFQ4) Term sheet expiration of 6/14/2019N/A7/16/2019First Florida Integrity BankBrian P. Keenan, Regional PresidentPO Box 10910Naples, FL (293) 213-3342$29,000,000N/AAt any time without penalty1) Closing is anticipated to take place on July 11, 20192) Term sheet shall expire if not accepted by Borrower by June 18, 2019. Once accepted, term sheet shall expire if transaction note closed by July 12, 20193) CAFR due upon request, as soon as available4) Subject to final credit approvalAbove rate are valid through July 12, 2019Capital BankMeriem Allgood, Senior Vice President6435 Naples BlvdNaples, FL 34109(239) 552-1018meriem.allgood@capitalbank-us.com$6,000 $12,000,000Rates will be locked 7 days prior to closing. Treasury rate shall be end of day yield.1) CAFR due within 270 days of fiscal year end2) Debt service coverage of at least 1.5x3) Projected MADS for the Series 2019 Note and MADS of all debt listen in the resolution will not exceed 20% of the aggregate of General Revenue Funds, MSTD Revenues and impact fee proceeds exclusive of (a) ad valorem tax revenues restricted to payment of debt service of any debt and (b) proceeds of the Series 2019 Note or Debt4) Term sheet shall expire if not accepted by Borrower on July 31, 2019N/AMake WholeTaxable Special Obligation Revenue Note, Capital OneJacqueline Bretz, Vice President275 Broadhollow RoadMelville, NY 11747(631) 457-9582jaci.bretz@capitalone.com$29,000,000N/ANone Collier County, FLBank Loan RFP SummaryProposal RequirementsContact InformationNot to Exceed Par AmountCredit FacilityFinal MaturityTaxable Interest RateInterest Rate FormulaRate Locked to Closing, or Date to be setPrepayment OptionsLegal/Other FeesOther Conditions & NotesTaxable Special Obligation Revenue Note, 10/1/2029 10/1/2031 10/1/2029 10/1/2031 10/1/2029 10/1/2031Indicative Fixed RatesOption 1) 2.87%Option 2) 3.16%Option 3) 3.38%Indicative Fixed RatesOption 1) 2.97%Option 2) 3.27%Option 3) 3.49%Fixed: 3.145% (WAL 90 months)Fixed: 3.310%(WAL 107 Months)Indicative: 2.74% Indicative: 2.80%62bps + 10-year LIBOR swap rate68bps + 10-year LIBOR swap rateOption 1) Make WholeOption 2) Can be repaid at any time by adding a premium of 42bps to the above quoted rates$8,500 1) Default Rate shall be 6% + Prime Rate as quoted in the Wall Street Journal2) Debt service coverage of at least 1.5x3) Projected MADS for the Series 2019 Note and MADS of all debt listen in the resolution will not exceed 20% of the aggregate of General Revenue Funds, MSTD Revenues and impact fee proceeds exclusive of (a) ad valorem tax revenues restricted to payment of debt service of any debt and (b) proceeds of the Series 2019 Note or Debt4) Must maintain a minimum Public Debt Rating of BBB5) Cross-default to other CBA-secured debtTD BankJames G. Hanning, Director(786) 417-1598Jim.Hanning@td.com$29,000,000N/ARate locked to closing if accepted by 6/14/2019, otherwise to be calculated by above formulas1) Default Rate of: Base Rate + 4% (Base Rate being the higher of (a) the Bank's Prime Rate and (b) 2.5% plus the one month Adjusted LIBOR Rate2) Required Anti-Dilution Test contained within Section 2.07 of the Issuer's Loan Agreement with Pinnacle Public Finance, Inc. dated December 28, 20173) CAFR due within 210 days of fiscal year end4) Additional information as reasonably requested by the PurchaserKey BankDavid Zapata, VP & East Region Manager201 South Warren Street, 2nd FloorSyracuse, NY 13202(315) 470-5180David_Zapata@keybank.com$29,000,000N/A$0 Non-callable for the first two years and prepayable in whole or in part on any date thereafterRate locked to closing if accepted by 6/19/2019N/A1)Debt service coverage of at least 1.5x2) Projected MADS for the Series 2019 Note and MADS of all debt listen in the resolution will not exceed 20% of the aggregate of General Revenue Funds, MSTD Revenues and impact fee proceeds exclusive of (a) ad valorem tax revenues restricted to payment of debt service of any debt and (b) proceeds of the Series 2019 Note or Debt3) CAFR due within 270 days of fiscal year end4) Default Rate of 3% above the current interest rate5) Subject to final credit approval6)Term sheet expires on 6/19/2019N/A$10,000 N/AOption 1) Standard Make WholeOption 2) October 1, 2022**Option 3) October 1, 2020****The Bond is callable at par on (or after) the Optional Redemption DateOnly locked upon the execution of a written rate lock letter agreementJP MorganRalph Hildevert, Executive Director1450 Brickell Avenue, Floor 33Miami, FL 33131(305) 579-9320ralph.hildevert@jpmorgan.com$29,000,000 COLLIER COUNTY, FLORIDA Direct Purchase Taxable Bond, Series 2019 Summary of Terms and Conditions June 12, 2019 This Summary of Terms and Conditions (the “Term Sheet”) is confidential and is intended as a statement of indicative terms only, and is provided to facilitate additional discussion. It is a proposal for your consideration only and not a commitment by JPMorgan Chase Bank, N. A. or its affiliates (“JPMorgan”) to provide the financing described in this Term Sheet or any other financing. The rates and fees set forth in this proposal are indicative and are subject to market conditions at all times until JPMorgan would commit to them in writing and, in any event should not be regarded as indicative after the date of this Term Sheet. Subject to the foregoing, the terms in this proposal expire on July 12, 2019. Purchaser: DNT Asset Trust, a Delaware statutory trust, wholly-owned subsidiary of JPMorgan Chase Bank, N.A., and an accredited investor and qualified institutional buyer (“Purchaser”). Issuer: Collier County, Florida (“Issuer”). Facility/Amount: A single maturity Taxable Bond in the amount not-to-exceed $29,000,000 (“Bond”). Purpose: Proceeds of the Bond would be used to finance land acquisition and to fund certain costs of issuance. Bond Maturity Date: October 1, 2029 or October 1, 2031, as selected by the Issuer prior to closing. Fixed Interest Rate: The Bond would accrue interest at a fixed rate per annum as set forth below, based upon the tenor selected by the Issuer prior to closing. The following fixed interest rates are indicative as of June 12, 2019 and are subject to change daily until a finalized amortization schedule and written rate lock letter agreement is executed between the Issuer and the Purchaser: Bond Maturity Date Optional Redemption Date ** Indicative Fixed Rate October 1, 2029 N/A; Standard Make Whole 2.87% per annum October 1, 2029 October 1, 2022 3.16% per annum October 1, 2029 October 1, 2020 3.38% per annum October 1, 2031 N/A; Standard Make Whole 2.97% per annum October 1, 2031 October 1, 2022 3.27% per annum October 1, 2031 October 1, 2020 3.49% per annum ** The Bond is callable at par on (or after) the Optional Redemption Date. Legal Fees: The Issuer would pay all Legal Fees of the Purchaser. Legal fees would be capped at $10,000, based on the scope of financing as presented. Mark-David Adams of Locke Lord, LLP would be engaged to represent the Purchaser. Confidential 2 OTHER PURCHASE REQUIREMENTS Bondholder Representative: JPMorgan Chase Bank, N.A. (the “Bank”) and its successors and assigns, or any other entity subsequently appointed by the majority of the bondholders, shall act as the representative on behalf of the bondholders and shall be the party which provides consent, direct remedies and takes all actions on behalf of the Purchaser and other bondholders under the Bond Documents. All or Nothing: The Bond would be purchased at 100% of Par on an ‘all or none’ basis. No Bond Rating: While Purchaser is a bondholder, the Bond shall not be rated by any rating agency, shall not be initially registered to participate in DTC, shall not contain a CUSIP number and shall not be marketed pursuant to any Official Statement, Offering Memorandum or any other disclosure documentation. The Purchaser shall take physical delivery of the Bond at closing. OTHER RATE, PAYMENT AND FEE PROVISIONS Bond Payments / Amortization: Interest would be payable semi-annually each April 1 and October 1, commencing on October 1, 2019. Upon an Event of Default, Interest would then be computed at the Default Rate (defined below). Principal would be payable annually each October 1, commencing on October 1, 2022 based on the following estimated amortization as selected by the Issuer prior to closing: Prepayment: The Bond may be prepaid in whole or in part, without premium or penalty on any Optional Redemption Date as defined above (if such option is selected by the Issuer prior to closing ). Any prepayment on any date other than those provided for above is subject to breakage costs payable by the Issuer. Day Basis/Year: 30/360. Base Rate: The higher of (i) the Bank’s Prime Rate and (ii) 2.5% plus the one month Adjusted LIBOR Rate, as such terms would be more particularly described in the related bond documents. Principal Payment Date Principal Payment Amount Principal Payment Date Principal Payment Amount October 1, 2019 $0 October 1, 2019 $0 October 1, 2020 $0 October 1, 2020 $0 October 1, 2021 $0 October 1, 2021 $0 October 1, 2022 $2,160,000 October 1, 2022 $1,220,000 October 1, 2023 $2,235,000 October 1, 2023 $1,270,000 October 1, 2024 $2,230,000 October 1, 2024 $1,235,000 October 1, 2025 $1,550,000 October 1, 2025 $525,000 October 1, 2026 $4,745,000 October 1, 2026 $3,690,000 October 1, 2027 $4,900,000 October 1, 2027 $3,820,000 October 1, 2028 $5,060,000 October 1, 2028 $3,945,000 October 1, 2029 $5,205,000 October 1, 2029 $4,065,000 Total $28,085,000 October 1, 2030 $4,090,000 October 1, 2031 $4,225,000 Total $28,085,000 If maturing October 1, 2031If maturing October 1, 2029 Confidential 3 Default Rate: Base Rate + 4.00%. OTHER BOND TERMS AND PROVISIONS Security: The Issuer will provide its Covenant to Budget & Appropriate from legally available Non-Ad Valorem Revenues sufficient to cover timely payment of all principal and interest on the Bond. This Covenant to Budget & Appropriate such amounts shall be cumulative to the extent not paid, and shall continue until such Non-Ad Valorem Revenues or other legally available funds shall have been budgeted, appropriated and actually paid. Drawdown: The proceeds of the Bond would be fully-drawn on the date of issuance. Required Documents: The terms of this financing would be evidenced by agreements, instruments and documents (collectively, the “Bond Documents”) that are usual and customary for a Direct Purchase Bond transaction. The required documentation would include, but not limited to, the terms and conditions outlined herein as well as the Purchaser’s standard provisions with respect to representations and warranties, covenants, events of default, remedies, conditions precedent, waiver of jury trial (to the extent legally permissible), compliance with anti-corruption laws, and other general provisions that the Purchaser and its counsel deem necessary and would otherwise be satisfactory in form and substance to the Purchaser and its counsel. Such Bond Documents to be prepared by Bond Counsel or Issuer’s Counsel as appropriate. Conditions Precedent: Usual and customary representations and warranties and other conditions prior to the issuance of the Bond for like situated issuers and for the type and term of the Facility, including absence of default, absence of material litigation and absence of material adverse change from the Issuer’s financial conditions and operations as reflected in the financial statements of the Issuer dated September 30, 2018. Additional conditions precedent would include delivery of acceptable bond documentation and legal opinions, including an opinion of bond counsel as to the validity and enforceability of the obligations of the Issuer under the Bond Documents. Financial Covenants: The Purchaser would require the Anti-Dilution Test contained within Section 2.07 of the Issuer’s Loan Agreement with Pinnacle Public Finance, Inc. dated December 28, 2017. Reporting Covenants: The Issuer would provide the following items in an electronic format acceptable to the Purchaser: 1. Receipt of CAFR within 210 days of the fiscal year end. 2. Additional information as reasonably requested by the Purchaser. Sale / Assignment: The Issuer would agree that the Purchaser may without limitation (i) at any time sell, assign, pledge or transfer all or a portion of the Bond, or one or more interests in all or any part of the Purchaser’s rights and obligations under the Facility to one or more assignees and/or participants which may include affiliates of the Purchaser; and (ii) at the Purchaser’s option, disclose information and share fees with such assignees and/or participants. Waiver of Jury Trial: The Issuer and the Purchaser would waive, to the fullest extent permitted by applicable law, any right to have a jury participate in resolving any dispute in any way related to this Term Sheet, any related documentation or the transactions contemplated hereby or thereby. Governing Law: All aspects of the Facility including this Term Sheet and any Bond Documents would be governed by the laws of the State of Florida. Confidential 4 OTHER PURCHASER REQUIREMENTS Municipal Advisor Disclosure: The Issuer acknowledges and agrees that (i) the transaction contemplated herein is an arm’s length commercial transaction between the Issuer and the Purchaser and its affiliates, (ii) in connection with such transaction, the Purchaser and its affiliates are acting solely as a principal and not as an advisor including, without limitation, a “Municipal Advisor” as such term is defined in Section 15B of the Securities and Exchange Act of 1934, as amended, and the related final rules (the “Municipal Advisor Rules”), agent or a fiduciary of the Issuer, (iii) the Purchaser and its affiliates are relying on the bank exemption in the Municipal Advisor Rules, (iv) the Purchaser and its affiliates have not provided any advice or assumed any advisory or fiduciary responsibility in favor of the Issuer with respect to the transaction contemplated hereby and the discussions, undertakings and procedures leading thereto (whether or not the Purchaser, or any affiliate of the Purchaser, has provided other services or advised, or is currently providing other services or advising the Issuer on other matters), (v) the Purchaser and its affiliates have financial and other interests that differ from those of the Issuer, and (vi) the Issuer has consulted with its own financial, legal, accounting, tax and other advisors, as applicable, to the extent it deemed appropriate. Expenses: The Issuer would pay or reimburse the Purchaser for all its out -of-pocket costs and expenses and reasonable attorneys' fees where not prohibited by applicable law and incurred in connection with (i) the development, preparation and execution of the Bond, and (ii) in connection with the enforcement or preservation of any rights under any agreement, any amendment, supplement, or modification thereto, and any other loan documents both before and after judgment. Information Sharing: The Issuer would agree that the Purchaser may provide any information or knowledge the Purchaser may have about the Issuer or about any matter relating to the Facility described in this Term Sheet to JPMorgan Chase & Co., or any of its subsidiaries or affiliates or their successors, or to any one or more purchasers or potential purchasers of the Bond, or participants or assignees of the Bond or the Facility described in this letter. Website Disclosure: As a best practice to maintain transparency, final bond documentation may be posted by the Issuer on a national public bond market repository provided that certain information be redacted by the Issuer as requested by the Purchaser. Items that should be redacted include data that could be construed as sensitive information, including, without limitation, signatures/names, addresses and other contact information of the parties’ representatives, account numbers, wire transfer and payment instructions, to the extent that such redactions would not violate any of Issuer’s disclosure obligations under applicable SEC and MRSB rules. Confidentiality: This Term Sheet is for the Issuer’s confidential review and may not be disclosed by it to any other person other than its employees, attorneys, board members and financial advisors (but not other commercial lenders), and then only in connection with the transactions being discussed and on a confidential basis, except where disclosure is required by law, or where the Purchaser consents to the proposed disclosure. Bank Contacts: Ralph Hildevert Executive Director 1450 Brickell Avenue, Floor 33 Miami, Florida 33131 (305) 579-9320 ralph.hildevert@jpmorgan.com Jay Robinson Vice President, Senior Underwriter 450 S. Orange Avenue, Suite 1000 Orlando, FL 32801 (407) 236-5472 jay.robinson@jpmorgan.com Confidential 5 If you have any questions regarding the above indicative terms, please do not hesitate to contact either of us. Sincerely, Ralph Hildevert Anthony Jay Robinson Executive Director, Banker Vice President, Senior Underwriter cc: Sergio Masvidal - masvidals@pfm.com Pete Varona - varonap@pfm.com