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Home My WebLink About2002-10-15 - Agendas - Final Oct 11 02 05: 08p p. 2 JAMES N. McCORD Attorney at Law 11 N. WEST AVE. SUITE #202 FAYETTEVILLE, ARKANSAS 72701 TELEPHONE (479) 695-1134 FACSIMLE (479) 695-1135 jimmocordlaw®alltel.ne1 TO: Fayetteville Public Facilities Board FROM: James N. McCord, Board Counsel?AI/1 DATE: October 11, 2002 RE: Board Meeting A meeting of the Fayetteville Public Facilities Board will be held on Tuesday, October 15, 2002 beginning at 4:15 p.m. in the conference room of Stephens Inc. at 3425 N. Futrell Road, Suite 201 in Fayetteville. The Board will consider a proposal from the Oppenheim investment banking firm for an engagement letter to restructure the Board's outstanding Single Family Mortgage Revenue Bonds, Series 1993. A copy of the proposed engagement letter is attached. The term of Dennis Smith expired February27, 2002. The terms of Steve Adams and Phillip Taylor expired March 2, 2002. Ark. Code Ann. Sec. 14-137- 108 provides that each member of a public facilities board shall serve until his successor is elected and qualified. The statute further provides that a member shall be eligible to succeed himself; and, successor members shall be elected by a majority of the board for terms of 5 years. cc: Fayetteville City Clerk Oct 11 02 05: 08p p. 3 A division of 805C,Inc. October t ,2002 • Mr.Denraii Smith Chairman`. The Fayetteville(Arkansas)Public Facilities Board 3425 Norte Futrell Drive,Suite 201 Fayetteville,AR 72703 RE; 57,730,000 The Fayetteville (Arkansas) Public Facilities Board'Single Family Mortgage Revenue Refunding Bonds,Series 1993 • Dear Chaij-man Smith? This engagement lerrer outlines'the proposed services ro be performed by Oppenheim,a Division of BOSC, Inc. ("O ftenheim")and George K. Baum& Company(•'GKB") for the Fayetteville(Arkansas) Public Facilities board (the "Facilities Board") related to its currently outstanding Single Family Mortgage Revenue Refunding Bonds, Series 1993 (the "Bonds"). The purpose of this engagement would be to restructurcl the Bonds in a way that improves their credit quality and allows excess assets to be released to • the Facilities Board upon closing. The steps necessary to complete our engagement are detailed below. Our ettgalieme'nt will take approximately 90 days to complete,.and will involve the following tasks. Oppenheim and GKB will perform due diligence on the mortgage loan portfolio,secw-irixe all or a ponion • of the ret4ining mortgage loans in the 1993 program,perform financial analysis including"yield proof" and forgivs ness analysis.review bond and mortgage documentation,and engage bond and/or tax counsel and other professionals as needed. All reasonable fees,costs and expenses of this transaction shall be paid out of the proceeds realized from the over-collateralization created from securirizing all or a portion of the mortgage loan portfolio, and the Facilities oard shall not have any obligation or responsibility to pay any fees and expenses except out of such proceeds. After all reasonable fees,costs and expenses for this transaction have been paid.the Facilities Board sh411 receive 66 2/3%of the net proceeds,and Oppenheim and GKB shall receive the remaining 33 1/3%for i(s services. In the event the transaction does not close for any reason,then no p.srticipant shall be paid for th'eir services. This agreement shall commence with the date of approval by the Facilities Board and shall i4xtend for a period of one year. • • • • • Oct 11 02 05: 09p p. 4 • • • • We truly Appreciate the opportunity to make this proposal to the Facilities Board. This has been a very program for other single family issuers across the United States,and is a unique opponunity to create funiis that can be used for your current needs without impairing the existing Bonds. We shall ijook forward to our upcoming meeting with the Facilities Board. Ifyou should have any qucstions in the inicirim,please do not hesitate to contact me at(501)227-3212. • Sincerely/ r d K.Wasson.Jr. Managin4 Director Opprolicirn,a Division of BOSC,Inc. • • Agreed to and Accepted this_day of ,2002: Authoriz4d Signature The Fayetteville(Arkansas)Public Facilities Board • • • • • 09..t. 11 02 05: 08p p. 1 JAMES N. MCCORD .:.(/Yurrrw.(It..(1«,, 11 N. WEST AVE. - • SUITE N202 FAYETTEVILLE, ARKANSAS 72701 • TELEPHONE 18OI) 695.1134 FACSIMILE 1501) 695.1138 • limmccordIaw@atllel.net • CONFIDENTIAL FACSIMILE TRANSMISSIONS • TO: /147,51i-//&72 • RE: , .4.9l/e, s r: . Ate - - - . FAX NO: ?/r- • • ?� NUMBER OF PAGES (Including This Page): • DATE: /G ////d ' - TIME: y tr you do not receive the complete :transmission, please- call Ln.': individual named below at (501) 695- 1134. • \ BY: i" /� • MESSAGE: e9C' ,o /P7trisie,',ice. r4&- 4-7/ii .4 ,syor1-« v� Ln��7`,.v�- Dl10141 7c2 i ',Z /44'7- CONFIDENTIALITY NOTE: This convnunicatlon 14 subfcci to inomcy•cticnt privilcgc. Inc inlorrn-uc contuncd rnrcin is PriYticgcd ind Conhdcntlil lnformstlon Iniendcd only for the sddressx. U you u-c tri( addresses, you in herOby notified this uty dlsscrnInatfon, dJsuibutlon, or copy of this eorarnusuc2ec Is rvictly prohibited, V yov tune =dyed this aommunlcxilon in error,.picssc Immotiatciy notify Ictcphonc sued rciwn he origins, hcstmtic i trtsmisalon to the stx)vc 'Thank you.