Newtown Township, Bucks County
REQUEST FOR PROPOSALS
FOR
BANK LOAN FINANCING – CAPITAL IMPROVEMENTS
Newtown Township is seeking proposals from qualified financial institutions to provide a tax-exempt fixed interest rate bank loan in a principal amount of $1.0 million in
accordance with the terms, conditions, and specifications contained in this Request for Proposals (RFP).
Request for Proposals documents are available on Newtown Township’s website at newtownpa.gov, or by contacting the Township office at (215) 968-2800.
Proposals should be emailed to Amanda Gattuso, Finance Director, amandag@newtownpa.gov. The deadline for submission of Proposals is May 3, 2024
at 12:00 P.M. local time. Late Proposals will not be accepted.
Proposals must remain valid for 60 days to allow for DCED approval as required by law. Newtown Township will be finalizing the necessary local ordinance required by
DCED on May 22, 2024. We would expect to close the loan within 5 business days of DCED’s subsequent approval.
It is the responsibility of the Proposer to ensure that all pages are included in the submission. All Proposers are advised to closely examine the request for proposal
documents. Any questions regarding the completeness or substance of the request for proposal documents or the scope of services must be submitted in writing via email to
Amanda Gattuso, amandag@newtownpa.gov by 12:00 P.M. local time on May 2, 2024.
The Township reserves the right to accept or reject any or all Proposals, in whole or in part, with or without cause, to waive any irregularities and/or technicalities, and to award
the contract on such coverage and terms it deems will best serve the interests of the Township.
A. PURPOSE
Newtown Township, Pennsylvania (the “Township”) is issuing this Request for Proposal (“RFP) from qualified financial institutions (the “Proposers”) to provide a tax-exempt bank loan in a principal amount of $1.0 million. Proceeds from this (the “Note” or “Loan”) will be used to provide funds to pay a portion of the costs of (i) Township street light upgrades, (ii) various street, roadway and other public work improvements, and (iii) LED conversion project for the Administration and Public Works offices.
The Township shall accept and review proposals from Proposers based upon the preliminary financing structure provided below. The Township will select the financial institution (the “Bank”) that provides the lowest overall borrowing cost to the Township while meeting the financing requirements of the Township.
B. STRUCTURE
Issuer: Newtown Township
Amount: $1.0 million
Settlement Date: TBD
Term: 4-year -OR- 5-year -OR- 6-year term
Rate: A tax-exempt fixed interest rate for the term of the loan
Interest Payment Dates: Semi-annually;
Year 1: August 15, 2024 and December 15, 2024
Years 2+ : June 15 and December 15, commencing June 15, 2025
Principal Payment Dates: Annually on December 15, commencing December 15, 2024
C. PROPOSAL FORMAT
Proposals will be evaluated based on their overall borrowing cost to the Township while meeting the financing requirements of the Township. In order to assist the Township in reviewing the responses, each proposal should include the following information:
(1) Proposal letter containing an overview of the proposal, as well as the legal name of the Proposer and the Proposer’s primary contact person(s) including address, telephone number, and e-mail address of the person to whom the Township may direct questions concerning the proposal. Please also include a minimum of three (3) references to whom similar services were provided, including the individual point person’s contact information.
(2) Amortization schedule
• For a proposed tax-exempt fixed interest rate for a 4-year term Loan. The Proposer shall give a stated time in which the proposed rate will be held until, as well as the index in which the rate
shall be calculated, should the stated time elapse.
• For a proposed tax-exempt fixed interest rate for a 5-year term Loan. The Proposer shall give a stated time in which the proposed rate will be held until, as well as the index in which the rate
shall be calculated, should the stated time elapse.
• For a proposed tax-exempt fixed interest rate for a 6-year term Loan. The Proposer shall give a stated time in which the proposed rate will be held until, as well as the index in which the rate
shall be calculated, should the stated time elapse.
(3) Describe in detail all fees and expenses which the Township will be responsible to pay to the Proposer, including any counsel fees. The amounts stated in the proposal shall represent the maximum amounts payable to the Proposer by the Township.
(4) A listing of all conditions, covenants, terms or restrictions, other than those specified in this RFP, which would be included in the Proposer’s commitment to provide the Loan.