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Park Ridge-Niles School District

64, Cook County, Illinois

June 27, 2013

Financing Options

Market Overview

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Historical AAA MMD Interest Rates

AAA Municipal Market Data (MMD) During the Past Five Years

(%)
6.0
5.5

20-Yr
AAA MMD

5.0
4.5
4.0

3.51%

3.5
3.0

2.48%

2.5
2.0

10-Yr
AAA MMD

1.5

6-13

4-13

2-13

12-12

8-12

10-12

6-12

4-12

2-12

12-11

8-11

10-11

6-11

4-11

2-11

12-10

8-10

10-10

6-10

4-10

2-10

12-09

8-09

10-09

6-09

4-09

2-09

12-08

8-08

10-08

6-08

1.0

Note: ReQlects market conditions as of June 20, 2013

Source: Thomson Financial

Municipal Yield Curve Comparison

AAA MMD Curves During the Past Seven Years
(%)
6.0

5.0

4.0
MMD Yield Curve
06/20/13

3.0

06/20/12
06/20/11
06/18/10

2.0

06/20/08
06/20/06

1.0

0.0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Note: ReQlects market conditions as of June 20, 2013

Source: Thomson Financial

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MMD-AAA Rate Slide Since May 1, 2013

MMD-AAA Rates Since May 1, 2013

%
4.50
4.00
3.50
3.00
2.50
2.00

10-Yr.

1.50

20-Yr.
30-Yr.

1.00
0.50
0.00

Municipal G.O. Interest Rates at Historical Lows

Percentage of Time BBI-20 Has Been
At or Below SpeciLied Level Since 1980

Historical BBI-20 Index1

(%)
14

(+)
+25 bp

12

21.8%

+20 bp

20.1%

+15 bp

10

18.4%

+10 bp

16.8%

+5 bp

8
Average = 6.35%

15.2%

Current (4.37%)

13.2%

-5 bp

11.2%

-10 bp
4

-15 bp
Current = 4.37%

-20 bp

-25 bp

8.3%
7.3%
6.6%

(-)

0
1-80

9.7%

1-85

1-90

1-95

1-00

1-05

1-10

(1) ReQlects market conditions as of June 20, 2013, the 20-year Bond-Buyer Index (BBI-20) is based on the average yields of 20-year bonds issued by 20 different general obligation bond
issuers; these issuers are all rated Aa2 by Moodys
Source: Bloomberg Information Systems

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Outstanding Bonds and Financing

Options

Outstanding Bonds

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Non-Referendum Limited Bonds

The District can issue bonds without a referendum to fund this plan, if the debt
service payments Qit within the Districts Debt Service Extension Base. This amount
increases with CPI annually.
The types of limited bonds the District can issue include:
Working Cash Fund Bonds

Can be used either for capital

or operating; requires a
petition period and public
hearing

Life Safety Bonds

Funding Bonds

Proceeds must be used for life

safety projects only which are
approved by the State and
Regional Superintendent of
Schools; requires public hearing

Can be used to refund

debt obligations of the
District such as lease or
debt certiQicates;
requires petition period
and public hearing

Proposed Projects
The District is considering several capital projects at Field School for summer of 2014
estimated to cost $8.2M.
The District can issue limited tax working cash or life safety bonds for these projects.
The following options assume the bonds are sold in March of 2014 and uses todays interest
rates for Aa rated bond issues.
In order to keep the debt payments and tax rate stable, a small amount of outstanding
bonds are restructured.

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Outstanding Debt Service

Proposed $8.2M Limited Tax Working Cash Fund Bonds-

No Tax Increase

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$25M Maximum Over 20 Years-No Tax Increase

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Rating Comparisons

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Moodys Ratios for Aaa Rated School Districts

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Rating DeQinitions

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Notice and Disclaimer

The accompanying information was

obtained from sources which William Blair
& Company, L.L.C. believes to be reliable
but does not guarantee its accuracy and
completeness.
The material has been prepared solely for
informational purposes and is not a
solicitation of an offer to buy or sell any
security or instrument or to participate in
any trading strategy.
Historical data is not an indication of
future results.
The opinions expressed are our own unless
otherwise stated.

Contact Information:

William Blair & Company

222 West Adams
Chicago, Illinois 60606
www.williamblair.com

Elizabeth M. Hennessy
Partner
ehennessy@williamblair.com
Phone: (312) 364-8955
Fax: (312) 236-0174

Per Rule G-23 we are providing the

information contained in this proposal for
discussion purposes in anticipation of
serving as an underwriter. In our capacity
as underwriter, our primary role will be to
purchase the Bonds as a principal in a
commercial, arms length transaction and
we will have Qinancial and other interests
that differ from yours. We will not be
acting as a municipal advisor, Qinancial
advisor or Qiduciary.
Additional information is available upon
request.
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