title
Refunding of Certain Outstanding Bonds, and Restructuring of Certain Interest Rate Swaps (B)
recommendation
The City Commission: 1) Authorize the refunding of all or a portion of the outstanding Utilities System Revenue Bonds, 2005 Series B (Federally Taxable), 2005 Series C, 2006 Series A, 2008 Series A (Federally Taxable), and 2010 Series C through the issuance of variable-rate, tax-exempt bonds; 2) Authorize the refunding of all or a portion of the outstanding Utilities System Revenue Bonds, 2003 Series A and 2005 Series A through the issuance of fixed-rate, tax-exempt bonds; 3) Approve the selection of one or more Senior Managers for the refunding bonds referenced in 1 and 2 above and authorize the appointment of additional Co-Managers if, upon the advice of Public Financial Management (PFM), our Financial Advisor, doing so would enhance the distribution of the refunding bonds; 4) Authorize the restructuring of all or a portion of certain outstanding fixed payer CMS interest rate swaps with JPMorgan Chase Bank, N.A. and Goldman Sachs Mitsui Marine Derivative Products, L.P., either through the amendment of the existing swaps or through the entry into one or more additional swaps, in order to convert the payments to be received by the Utility under such swaps back to the original percentage of 1-month LIBOR formulation; 5) Authorize staff to negotiate and enter into an ISDA Master Agreement with Deutsche Bank in order to provide an additional potential swap counterparty to ensure GRU’s ability to receive competitive market-based economics; 6) Authorize the utility to work with its Financial Advisor to select one or more counterparties to provide any additional swaps as described in 4 above; 7) Approve the designation of any such additional swaps as a “Qualified Hedging Contract” within the meaning of the City’s Amended and Restated Utilities Bond Resolution; and 8) Authorize the Clerk of the Commission, the General Manager and other Authorized Offic...
Click here for full text