1	Introduction to ERIN/muni Erin Analytics www.erinanalytics.com
2	Table of Contents ERIN/muni System Overview The Financing Project Components of the Financing Project The Main Screen Defining a Bond Issue Defining Bond Issuance Expenses Defining Recurring Fees Cash Flows Calculated Cash Flows Arbitrary Cash Flows Derived Cash Flows How to Derive a Cash Flow 1 of 2
3	Table of Contents The Component List Sizing & Structuring a Bond Issue - RUN Solving the Bond Issue (Calculate) Reporting Interfacing With Excel 2 of 2
4	System Overview A 20+ year “work in progress” Originally designed for “Wall Street” in 1983, ERIN/muni is a fully functional and certified software system for: Broker Dealers / Underwriters Municipal Bond Issuers – Cities, States, etc. Debt Managers Financial Advisors Bond and Tax Attorneys Corporate Bond Issuers ERIN/muni is Windows 95/98/2000/XP and NT compatible
5	System Overview – ERIN/muni: Sizes & structures bond issues Refunds any number of prior bond issues Evaluates competitive bids Manages debt & facilitates “what if” scenarios Calculates tax rates Structures escrows using a variety of securities Exports/imports data to/from Excel & other Windows applications Operates effectively on a LAN Produces verifiable results Complies, at all times, with U. S. Tax Code regulations And more
6	The Financing Project A financing project may be a new money issue, a refunding, a data warehouse to manage outstanding debt or all of the above. The project name is entered by the analyst when the project is created at initiation of a financing. When saved, a project file is stored with .PJW as the file extension. For example, a project named ANYCITY would be seen with the Windows Explorer as: ANYCITY.PJW A project consists of one or more named components.
7	Components of the Financing Project Choose well - component names help document the Financing A project consists of one or more components (i.e. sub-files). The analyst combines a prefix (PPP) and a suffix (SSS…S) to form the component name. Valid prefixes include: NEW, OLD, EXP, RUN, FEE, CSH, RES, AGG, XLS, ISS, OMS, & TKD. For Example, a Series 1993-B issue could be named OLD1993B. The issuance expenses for NEW2001NM would be EXP2001NM.
8	The Main Screen This Screen Displays When the Software is Loaded Click the File drop down menu to open/create a project. Opening a project loads all components of the project. Press F10 at any time to list them. Other drop down menus then become enabled. Click each to view the functionality.
9	Defining a Bond Issue Click “Create/Update Bond Issue” from the “Define” Dropdown Menu Name the component (e.g. NEW, OLD, ISS). Select the bond issue type. Enter the relevant dates. Enter the call information. Choose the number of interest and principal payments per year. Enter the bond denomination. Click the long button in the upper right corner to continue the definition.
10	Defining a Bond Issue (Continued) Enter a coupon rate and a price or yield for each maturity. Enter a 0% coupon rate for each CAB. Leave face amounts blank for a new issue that is to be sized and structured. Mark each maturity of a term bond with a single integer (e.g. 3). Use other integers for other term bonds. Freeze/force a face amount by entering an “H” in the Hold column.
11	Defining Bond Issuance Expenses Click “Expenses of Issuance” on the “Define” Dropdown Menu NEWssssss expenses are assigned EXPssssss as a name. Expenses may be coded as fixed or variable. Recoverable expenses are entered in the “Affects Arb(itrage yield)” column. Recurring fees are entered via the “Recurring Fees” screen (from Define menu).
12	Defining Recurring Fees Click “Recurring Fees” from the “Define” Menu A cash flow of recurring expenses named FEE2000 results from this definition. FEE2000 changes automatically as NEW2000 changes. Cash flow NEW2000 plus FEE2000 reflects the total liability for the issue.
13	Calculated Cash Flows A calculated cash flow is one that results from formula computations involving basic input parameters such as coupon rates, dates, investment rates, fee rates. Many of a project’s components give rise to calculated cash flows. Examples of calculated cash flows are: debt service, reserve fund investment proceeds, escrow investments & recurring fees. NEW, OLD, and ISS are examples of component types that give rise to calculated debt service cash flows. RES and OMS are examples of component types that give rise to calculated investment cash flow proceeds. FEE is an example of a component type that gives rise to a calculated recurring fees cash flow.
14	Arbitrary Cash Flows - CSH An arbitrary cash flow is entered by the analyst – dates and amounts. An arbitrary cash flow is one that is not practical nor easy to calculate or derive. For example, a construction draw schedule is entered as an arbitrary cash flow.
15	Derived Cash Flows - AGG A derived cash flow is one that is generated by combining, positively or negatively, calculated, arbitrary and/or other derived cash flows. A derived cash flow may be prorated. A derived cash flow may be date delimited. A derived cash flow name prefix is AGG. A derived cash flow is automatically recast if an underlying component changes.
16	How to Derive a Cash Flow Click “Aggregate Cash Flows” from the “Define” Dropdown Menu This example shows how to derive a financing’s post refunding debt service. A derived cash flow is automatically recalculated anytime an underlying component changes. Note the + (blank) and – algebraic signs. Note how the AGG cash flow may be prorated and/or date delimited.
17	The Component List Click F10 anywhere, anytime to display the component list!
18	Sizing & Structuring a Bond Issue - RUN Click “Size/Structure NEW” from the “Solutions” Dropdown Menu The design specs for a financing are entered and stored in a RUN component. In effect, a RUN describes how the bond issue is “made”. Note the tabs that provide for additional input specifications screens.
19	Sizing & Structuring - Requirements Click a Tab to Specify a Refunding Escrow Click the “Automatic SLG Escrow” tab and enter the Escrow Specifications.
20	Sizing & Structuring - Requirements Click the Tab to Structure the New Debt Through D/S Limits Click the “Debt Service Limits” tab to limit the future debt service payments, that is, to shape the debt.
21	Sizing & Structuring – Requirements Click the Reserve Fund Tab to Specify a Reserve Fund A reserve fund is structured as an investment whose cash flow may be AGG(regated) with other cash flows.
22	Solving the Bond Issue (Calculate) Once all of the relevant fields and tabs of the RUN scenario screen have been entered … Click on Calculate!
23	Reporting “The reports are intelligently formatted, plus they just look good” Reports can be “viewed” before printing Reports can be printed individually Reports can be “stacked“ with numbered pages Reports can be stacked and packaged for e-mailing Reports can be “footnoted” Reports of cash flows can be date “cropped” Reports can be “annualized“ Reports are automatically “staged” for export to Excel
24	Reporting Click “Reports” on the “Main Screen”
25	Interfacing With Excel Data may be exported to Excel in three ways: Reports are automatically staged for export to the Windows “clipboard”. Data displayed in any “imbedded spreadsheet grid” screen may be copied and pasted into Excel or other Windows application. A dynamic & automatic data “link” from ERIN/muni to Excel may be established (see the next two charts).
26	Interfacing With Excel – the Link First, Set Up the Dynamic Link Specifications - XLS Click “Specify Excel SS Content” from the “Define” dropdown menu. Enter the XLS component name. Name the component cash flows that are to be exported. The specification screen tells ERIN/muni where to put the cash flows data. The Excel SS is updated automatically anytime a component’s data changes. Next, Activate the Link
27	Interfacing With Excel Activate the Link to Begin the Data Transfer Click “Link to Excel SS” from the File dropdown menu. Enter the path and name of an existing SS; blank to create a new SS. Once linked, data are automatically sent to the SS when any one of the XLS2000 specified components changes.