DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Authorizing the issuance of approximately $52,000,000 Variable Rate Certificates of Obligation, Series 2016
SUMMARY:
This Ordinance authorizes the issuance of approximately $52,000,000 "City of San Antonio, Texas Variable Rate Certificates of Obligation, Series 2016" (the "Certificates") and levies an annual ad valorem tax, within the limitations prescribed by law, for the payment of the Certificates; prescribes the form, terms, conditions, and resolves other matters incident and related to the issuance, sale, and delivery of the Certificates; authorizes the execution of a Paying Agent/Registrar Agreement, Tender Agent Agreement, and a Purchase and Investment Letter; and to execute certain other documents relating to the sale thereof; and provides for an effective date.
BACKGROUND INFORMATION:
The City is issuing approximately $52,000,000 of its "City of San Antonio, Texas Variable Rate Certificates of Obligation, Series 2016" to purchase the Frost Bank Tower and pay professional services (including closing cost) related to such acquisition and financing.
The Certificates will be issued as thirty-year variable rate obligations, initially in a three-year term (or "fixed") rate mode with a one-year call option. The Certificates will have multi-modal conversion flexibility (including conversion to tax-exempt obligations) at the expiration of the initial three-year interest rate period.
On November 4, 2016, the City released a request for bid for a Placement Agent for the Certificates and selected M. E. Allison & Co., Inc. to serve as Placement Agent for this transaction. Since this transaction will be privately placed, the Placement Agent will receive the bids for the Certificates on behalf of the City. It is anticipated that bids on the Certificates will be received on December 6, 2016 and closing and delivery of the Certificates is planned for ...
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