DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICT(S) IMPACTED: City Wide
SUBJECT:
CPS Energy Financial Transaction
SUMMARY:
CPS Energy requests City Council approve separate Ordinances that authorizes the issuance of the City of San Antonio, Texas Electric and Gas Systems Variable Rate Junior Lien Revenue Refunding Bonds, Series 2015A and Series 2015B (collectively, the "Bonds"), in a combined principal amount not to exceed $255,000,000, and other financial matters as necessary to refund $250,000,000 in outstanding variable rate demand obligations designated as the City of San Antonio, Texas Electric and Gas Systems Junior Lien Revenue Bonds, Series 2003 ("Refunded Obligations"), for the purpose of refinancing existing variable debt into new series variable debt that will have low cost initial interest rate modes and no requirement to obtain third party liquidity (which eliminates bank counterparty risk), which is a requirement of the Refunded Obligations; and further authorizes the distribution of an Official Statement relating to the Refunding Bonds.
The respective Ordinances authorizing issuance of the Bonds include a delegation of authority by the San Antonio City Council to CPS Energy's Designated Financial Officers, defined in the Ordinance to include the President and Chief Executive Officer ("CEO") and the Group EVP - Financial & Administrative Services, CFO & Treasurer of CPS Energy ("CFO"), to be exercised by either of such parties, to issue and set pricing of the Bonds, as permitted by Chapters 1207 and 1371, as amended, Texas Government Code, respectively, and to undertake necessary matters relating to the foregoing.
BACKGROUND INFORMATION:
Refunding Bonds: The Ordinances pertaining to the Bonds authorize CPS Energy to issue debt not to exceed $255 million to refund the Refunded Obligations, and to pay related costs and expenses, and to distribute an Official Statement with respect thereto. The Or...
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