Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
OCTOBER 14, 2020
Subject
SUBJECT: MEASURE R SHORT-TERM BORROWING PROGRAM
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. REPLACE the direct purchase revolving credit facilities ("RCF") and drawdown bond facility ("DBF") with a Measure R Commercial Paper Program, finalize negotiations with the recommended banks and execute agreements and related documents:
1. REPLACE the RCFs currently being provided by Bank of the West ("BW") of $50 million and State Street Public Lending Corporation ("State Street") of $100 million with a Direct-pay Letter of Credit ("LOC") to be provided by State Street Public Lending Corporation for a committed principal amount of $100 million for a two-year term at an estimated cost of $1.3 million including interest, legal fees and other related expenses.
2. REPLACE the DBF currently being provided by RBC Capital Markets, LLC ("RBC") of $150 million with a LOC provided by Bank of America, N.A. ("BANA") for a committed principal amount of $90 million for a two-year term at an estimated cost of $1.4 million including interest, legal fees and other related expenses.
B. If unable to reach agreement with one or more of the recommended banks described above, authorize the Chief Executive Officer to finalize negotiations with each successively ranked bank for LOCs and/or RCFs having two-year terms and the estimated costs shown in Attachment A.
C. ADOPT a resolution with respect to the Measure R short-term program that approves the selection of State Street and BANA or such other banks selected by the Chief Executive Officer for the Measure R short-term program, and the forms of the supplemental trust agreement, issuing and paying agent agreement, dealer agreement, reimbursement agreements, and commercial paper offering memorandum in substantially similar form with those on file with the Board Secretary and that makes certa...
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