City of San Antonio - File #: 14-1344

• File #: 14-1344
• Type: Resolution
• In control: City Council A Session
• On agenda: 6/19/2014
• Posting Language: A Resolution of the City of San Antonio, Texas Education Facilities Corporation approving a Second Amendment to the Loan Agreement between the City of San Antonio, Texas Education Facilities Corporation and Trinity University, dated as of May 1, 2002, relating to the University providing self-liquidity for the purchase price of tendered bonds in lieu of liquidity being provided by a financial institution. [Carlos Contreras, Assistant City Manager; Rene Dominguez, Director, Economic Development]

Date	Ver.	Action By	Action	Result
6/19/2014	1	City Council A Session

DEPARTMENT: Economic Development


DEPARTMENT HEAD: Rene Dominguez


COUNCIL DISTRICTS IMPACTED: City Wide


SUBJECT:

The amendment (Amendment) of a loan agreement (Loan Agreement) between the City of San Antonio, Texas Education Facilities Corporation (EFC) and Trinity University (Trinity) related to higher education bonds issued on behalf of Trinity in 2002.


SUMMARY:

City Council, which serves as the governing body of the EFC, will adjourn and convene as the EFC to consider a Resolution authorizing the Amendment of the Loan Agreement between the EFC and Trinity, which will permit Trinity to provide its own financing support facility. The Loan Agreement relates to the EFC's issuance of $32 million in higher education bonds (Bonds) on Trinity's behalf in 2002 for campus improvements. Trinity has the right to request the Amendment under the terms of the Loan Agreement. EFC will then adjourn and reconvene as the City Council. No action is required to be taken by the City Council on the Amendment.


BACKGROUND INFORMATION:

In 1983, the City established the EFC, as a non-profit corporation to issue tax-exempt bonds. The EFC issues bonds for the purpose of financing the cost of institutions of higher education in providing educational facilities, housing facilities, and related facilities. The revenue bonds issued by the EFC are purchased by bondholders who provide a cash payment to a borrower (the higher education institution making the capital investment), in exchange for the borrower's promise to repay the bondholders over time. The payments required from the borrower are secured by revenues derived from the facility built with the proceeds of the cash payment from the bondholders.

In 2002, the EFC, acting on behalf of the City, issued revenue bonds in the amount of $32 million, in order to assist Trinity in the financing of campus improvements. Because the Bonds are short term variable-rate obligations, which permit the bond...