DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Approving the issuance of up to $100,000,000 in Taxable Tax Notes, which shall be delivered in installments through no later than August 1, 2020
SUMMARY:
This Ordinance authorizes the issuance of up to $100,000,000 in principal amount of City of San Antonio, Texas Tax Notes, Taxable Series 2017, for the purpose of financing improvements to the San Antonio International Airport; secures the payment thereof by authorizing the levy of an annual ad valorem tax; approves and authorizes the execution of a Revolving Installment Delivery Note Purchase Agreement, a Paying Agent/Registrar Agreement, and all other instruments and procedures related thereto; delegates authority to certain City officials to approve certain final terms and the installment delivery of such notes; and provides for an immediate effective date.
BACKGROUND INFORMATION:
The City is issuing City of San Antonio, Texas Tax Notes, Taxable Series 2017, ("Tax Notes") in a principal amount up to $100,000,000 to provide interim financing for the airport capital improvement program. The Tax Notes will be issued through negotiation through a Revolving Installment Delivery Note Purchase Agreement (the "Agreement") with Bank of America, N.A. as a member of the City's Financial Underwriting Pool. The City's Co-Financial Advisors had preliminary discussions with the banks in the pool to discuss this potential transaction. Based on those discussions, the Co-Financial Advisors moved to formal negotiation with the bank that had terms that were most advantageous to the City. The Tax Notes will be issued through negotiation with Bank of America, N.A. in an amount up to $100,000,000 which will be issued in installments up to twice per year (until August 1, 2020), with a maximum maturity of August 1, 2024. The City will have the option to prepay the Tax Notes at any time on and after August 1, 2020 at p...
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