4/24/12 - Barnegat Township School District

a. Interest rate certainty in a rising interest rate environment; rate lock offered
b. No offering document necessary
c. No ratings or credit enhancement necessary
d. No underwriter’s discount
e. Prepayment flexibility – callable on any interest payment date
f. Quick closing; ability to close within 30 days
4. Interest rates have risen significantly over the past week. We priced our proposal on March 20 th
using the 10 year Treasury Swap rate as our base index; given the average life of the financing is 9.9
years. Our tax-exempt rate is 19 basis points higher on March 20 th than it would have been if priced
on March 12 th . As you can see from the data below, interest rates are trending upwards and the
Board may want to take advantage of interest rate certainty offered through a private placement.
We have provided a 60 day rate lock offer in the body of this proposal. To the extent that the Board
would like a longer rate lock, we are able to provide a longer rate lock if needed.
Date
10 Year
Treasury Swap
Tax-Exempt
Rate
3/20/2012 2.42 2.94
3/19/2012 2.34
3/16/2012 2.4
3/15/2012 2.42
3/14/2012 2.25
3/13/2012 2.15
3/12/2012 2.09 2.75
This cover letter and term sheet include only a brief description of the principal terms of the proposed
transaction. Please understand that this proposal is not a commitment or offer to lend, and does not create any
obligation for Purchaser or BAPCC. Purchaser and BAPCC will not be responsible or liable for any damages,
consequential or otherwise, that may be incurred or alleged by any person or entity, including the Board, as a result
of this letter. Purchaser will notify you in writing of its decision if Purchaser agrees to proceed with the proposed
transaction after completing its review and analysis.
Please feel free to contact me at 617.434.7760 to discuss the proposed transaction, or to accept this
proposal, please sign the enclosed copy of this letter by April 27, 2012 and return it to Banc of America Public
Capital Corp, 100 Federal Street, 8 th Floor, Boston, MA 02110 Attention: Holly Andreozzi, or by fax to the
same attention at fax number: 617.434.1814.
I look forward to the opportunity to work with you on the proposed transaction for the Board.
Very truly yours,
Banc of America Public Capital Corp
By: Holly Andreozzi
Authorized Agent
Barnegat Township Board of Education Meeting Minutes
April 24, 2012 27