Laserfiche WebLink
°W& Board <br />ISSUE: <br />The existing letter of credit with Bank of America, N.A. associated with the 2008C Electric Revenue <br />Bonds is expiring and the 2011A Electric Revenue Bonds, which were purchased by Wells Fargo under a <br />direct purchase agreement, needs to be remarketed. Riverside Public Utilities (RPU or Utility) can <br />extend the existing letter of credit (LOC) at a reduced cost. In addition, RPU can remarket the <br />outstanding 2011A Electric Revenue Bonds in the existing structure (variable rate) at a reduced cost. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities recommend that the City Council: <br />1. Approve the City's Financing Team as described in this report; <br />2. Adopt a resolution relating to the plan of finance, specifically authorizing a remarketing of the <br />2011A Electric Revenue Bonds (including amending Resolution No. 22193 and the related <br />Continuing Covenant Agreement) and authorizing an extension of the existing letter of credit for <br />the 2008C Electric Revenue Bonds (including amending the associated Reimbursement <br />Agreement); and <br />3. Authorize the City Manager, or designee, to execute all documents related to these actions. <br />BACKGROUND: <br />RPU has approximately $211 million (principal amount) of variable rate debt obligations outstanding in <br />four separate series of revenue bonds, the features of which are described below. The 2008A Electric <br />Revenue Bonds are Variable Rate Demand Obligations (VRDOs), the proceeds of which were used to <br />refinance the 2004B Electric Revenue Bonds. The 2008C Electric Revenue Bonds are VRDOs and they <br />were used to refinance the 2005A Electric Revenue Bonds. The 2011A Electric Revenue Bonds are <br />Direct Placement Bonds that refinanced 2008B Electric Revenue bonds and the 2008B Electric Revenue <br />Bonds were used to refinance the 2005B Electric Revenue Bonds. <br />M Rat 7FTT <br />Credit <br />Amount <br />Series and <br />Par <br />Structure <br />Credit <br />Facility Remarketing Ratings <br />Coupon Swapped <br />Purpose <br />Outstanding <br />Facility <br />Expiry <br />Range and Swap <br />Rate <br />Electric System <br />Variable <br />Direct <br />o <br />1@00% <br />(Refunding <br />$41,925,000 Indexed to <br />70% of 1- <br />Placement <br />Wells Fargo <br />4/28/2014 N/A N/A <br />Variable <br />Bonds) <br />Month LIBOR <br />70 bps <br />3.2010 /o <br />