Item B - ORI/Sears Sales Terms - Laserfiche WebLink

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ATTACHMENT D S E ATT L E- N O RT H W E ST ~ oo0 Southwest Broadway SEcuRmEs CORPORATION ~ite 1 'l'h,' PeRle ,: ~ Prom t~ ~ ln.~;'~l rth-~J t Ponhnd~ Or~n 97205. ~tl.ki..~ Ffcm 5~.C~' J ~70 (~03} 27~300 June 14, Cynthia Guinn Oregon Rest, arch Facility 1715 Franklin Blvd. Eugene. Oregon 97403 Dear Ms. C~uinn: I und~:rstand that the Eugene City Council will be meeting this week to approve the proposed terms for a purchase and sales agreement with ORI for its new headquarters building. Given the timing of the Council meeting I thought 1 would update you on the status et' our financing schedule. To reiterate, we are structuring the financing for ORI a~ a S01 (c) 3 entity, and will act as an tmdcrwriter to issue the debt as a tax-exeml~ offering, In order to obtain the best possible ral~s we are soliciting bond insurance to provide a credit guaranty to the bondholders. The firm step in that process is to obtain a rating indication f~om a rating agency as to the integrity of the organizational credit. As such we have analyzed ORl's finances and provided summary information to them on your excellent track record and ability to repay the debt. As you know, we met with Standard and Poor's in Portland last week to provide a ratings p~eaentation of ORI. S& P is in the process of reviewing the information that we provided to them, and has asked f r clarification of a few Items before they complete cheir ratings assessment. Ba~ed on my conwrsations with them I would expect a .ratings assessment by the first week in July, which will provide thc bond insurers with an expectation of investment grade. Our next step will be to negotiate the terms of tho bond insurance through thc mid- July, and ask for bond counsel to draft an inducement resolution on behalf of the issuer for their next available meeth~g in August. Our financing schedule will thcn stay on course with the expectation thaz we would close and fund by mid-October. Thank your for the time you took to assist us with the ratings presentation, and for the follow up r~sponsc. 1 believe our financing plan is right on schedule and that we will be able to close this wansaction in The time necessary W start construction. Sincerely, Cynthia A. Parker Vice President oc: Jill Sherman GED Tom Cody; GiSD 1 ODD Southwest Broadway · Portlalrsd, OR 9?205 · (.qO~,) ::LP~'.,q-83OQ · WashJnffton m Orc~on · Idaho · Utah