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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 6/12/2018
Item Creation Date:
FIN: CUS Series 2012B
Agenda Item#: 14.
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| | | | | | | | Summary:
ORDINANCE supplementing and amending the City of Houston, Texas Combined Utility System Master Ordinance No. 2004-299, Ordinance No. 2012-483, Ordinance No. 2017-325; authorizing the Remarketing and Purchase of the Combined Utility System First Lien Revenue Refunding Bonds, Series 2012B; authorizing the Mayor and City Controller to approve the amounts, interest rates, mode, prices, and terms of the Remarketed Series 2012B Bonds and certain other matters relating thereto; making other provisions regarding such bonds including the use of a Remarketing Memorandum; authorizing the execution and delivery of a Standby Bond Purchase Agreement, a Remarketing Agreement, a Paying Agent/Registrar Agreement and other documents and instruments necessary or convenient to carry out the remarketing of the Series 2012B Bonds, and matters incident thereto; approving the engagement of certain professionals in connection with the foregoing; authorizing and ratifying other actions; making certain findings with respect thereto; containing other provisions relating to the subject; and declaring an emergency |
| | | | | | | | Background:
An Ordinance Supplementing and amending the City of Houston, Texas Combined Utility System Master Ordinance 2004-299; Ordinance 2012-483; Ordinance 2017-325; authorizing the remarketing and purchase of the Combined Utility System First Lien Revenue Refunding Bonds, Series 2012B.
RECOMMENDATION: (Summary)
An Ordinance Supplementing and amending the City of Houston, Texas Combined Utility System Master Ordinance 2004-299; Ordinance 2012-483; Ordinance 2017-325; authorizing the remarketing and purchase of the Combined Utility System First Lien Revenue Refunding Bonds, Series 2012B, in an aggregate principal amount of $100,000,000; authorizing the Mayor and City Controller to approve the amounts, interest rates, mode, prices, and terms of the remarketed Series 2012B Bonds and certain other matters relating thereto.
SPECIFIC EXPLANATION:
The City has identified $100 million of the Combined Utility System First Lien Revenue Refunding Bonds, Series 2012B (Direct Purchase Obligations) held by State Street Public Lending Corporation that as a result of Tax Reform, effective January 1, 2018, are subject to increased interest cost.
The proposed ordinance provides for remarketing the Series 2012B Bonds as variable rate demand bonds supported by a State Street liquidity facility in an aggregate amount of $100 million.
The Finance Working Group recommends the CUS Series 2012B Bonds be remarketed by Goldman Sachs, as Remarketing Agent. Orrick, Herrington & Sutcliffe LLP and Bratton & Associates are recommended as co-bond counsel. Greenberg Traurig, LLP and the Chevalier Law Firm are recommended as co-disclosure counsel.
This transaction was presented to the Budget and Fiscal Affairs Committee on April 24, 2018.
Recommendation:
The FWG recommends the approval of this item.
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| | | | | | | | Prior Council Action:
Ordinance No. 2004-299, 2012-483, 2017-325
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| | | | | | | | Amount and Source of Funding:
Not Applicable
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| | | | | | | | Contact Information:
Melissa Dubowski Phone: 832-393-9101
Charisse Mosely Phone: 832-393-3529
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| ATTACHMENTS: | | Description | Type | | RCA | Signed Cover sheet |
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