Title
REPLACEMENT OF CREDIT AGREEMENT FOR COMMERCIAL PAPER NOTES, SERIES C (B)
A RESOLUTION OF THE CITY OF GAINESVILLE, FLORIDA AUTHORIZING THE REPLACEMENT OF AN EXISTING CREDIT AGREEMENT WITH RESPECT TO ITS UTILITIES SYSTEM COMMERCIAL PAPER NOTES, SERIES C; APPROVING THE FORM OF A CREDIT AGREEMENT WITH BANK OF AMERICA, N.A., AND DELEGATING TO AUTHORIZED OFFICERS THE AUTHORITY TO NEGOTIATE AND FINALIZE THE TERMS THEREOF; AUTHORIZING THE PAYMENT OF COSTS OF ISSUANCE RELATED TO THE TRANSACTIONS DESCRIBED HEREIN; AUTHORIZING PROPER OFFICIALS TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE IN CONNECTION WITH THE ISSUANCE OF THE REPLACEMENT CREDIT FACILITY; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE.
Explanation
On October 5, 1992, the City adopted its Second Supplemental Subordinated Utilities System Revenue Bond Resolution, as amended, supplementing the Amended and Restated Subordinated Utilities System Revenue Bond Resolution authorizing the issuance of its Utilities System Commercial Paper Notes, Series C. These Notes were secured by a Credit Agreement dated March 1, 2000, issued by Bayerische Landesbank Girozentrale (“BLB”), which expires November 30, 2015. BLB has decided to exit this business in its entirety and elected not to extend or renew the terms thereof.
The City, through its Financial Advisor, Public Financial Management (PFM), requested information and submissions for an alternate credit facility. The following five (5) banks responded to the RFI: Bank of America, N.A.; Barclays Bank PLC; JP Morgan Chase Bank, N.A.; Mizuho Bank, Ltd.; and Sumitomo Mitsui Banking Corporation.
Based on a review of evaluative criteria including, but not limited to, facility fees, proposed term, long-term and short-term bank ratings and other fees, expenses, and terms, Bank of America, N.A. provided the most responsive submission.
Fiscal Note
The facility fee under the current BLB Credit Agreement is 16 bas...
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