Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
FEBRUARY 17, 2015
Subject/Action
SUBJECT: PROP A AND PROP C COMMERCIAL PAPER/SHORT-TERM BORROWING PROGRAMS
ACTION: AWARD CONTRACTS FOR LETTERS AND LINES OF CREDIT TO COVER $200 MILLION OF PROP A AND $150 MILLION OF PROP C BORROWING CAPACITY
Heading
RECOMMENDATION
Title
CONSIDER:
A. AUTHORIZING the Chief Executive Officer to renew and/or replace the direct-pay letters of credit ("LOC") and direct purchase revolving credit facility ("RCF") for the Proposition A and Proposition C commercial paper/short-term borrowing programs to be provided by the banks described below and finalize negotiations with the recommended banks and enter into reimbursement/credit agreements and related documents associated with such LOCs and RCF:
1. RENEWING AND INCREASING the stated amount of the LOC currently provided by Sumitomo Mitsui Banking Corporation, acting through its New York Branch ("Sumitomo") for a LOC commitment amount of $125 million for a three-year term for the Proposition A commercial paper program at an estimated cost of $2.706 million including legal fees and other related expenses;
2. RENEWING the LOC currently provided by MUFG Union Bank, N.A. ("Union Bank") for a LOC commitment amount of $75 million for a three year term for the Proposition A commercial paper program at an estimated cost of $1.714 million including legal fees and other related expenses;
3. RENEWING the RCF currently provided by Wells Fargo Bank, National Association ("Wells Fargo") for a commitment of $75 million for a three year term for the Proposition C short-term borrowing program at an estimated cost of $1.702 million including legal fees and other related expenses; and
4. REPLACING the LOC currently being provided by State Street Bank and Trust Company ("State Street") with respect to the Proposition C commercial paper program with a LOC to be provided by Bank of America, N.A. ("B of A") for a LOC commitmen...
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