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90029190v2 <br /> <br /> <br />April 20, 2023 <br />Page 2 <br /> <br /> <br />Pursuant to the enclosed notice, the Bank has advised the City that the interest <br />rates on each of the Notes is currently a variable rate based on the London Interbank <br />Offered Rate (“LIBOR”)—a key benchmark rate for setting the interest rates on adjustable <br />rate loans around the world. On June 30, 2023, LIBOR is being phased out and will no <br />longer be available. This necessitates a change to the benchmark rates used to set <br />interest rates on each of the Notes. <br />Proposed Council Action <br />Under the terms of the Notes, the Bank has the discretion to select a comparable <br />benchmark rate to replace LIBOR upon its unavailability. In order to document this <br />change, the Bank has requested that the City and the Borrower enter into an amendment <br />to each of the Notes in the form of an Allonge to Note (the “Allonge s”). Substantially final <br />versions of the Allonges are enclosed with this memorandum. <br />The City is being asked to approve the execution of the Allonge s evidencing the <br />new rates for the Notes. Enclosed with this memorandum is a draft resolution for your <br />consideration that approves the forms of the Allonges and authorizes their execution. <br />Effect <br />The Allonges do not affect the City’s obligations under the Notes or create any new <br />liabilities for the City. The City will not be responsible for paying any bank or legal fees in <br />connection with the execution of the Allonges or for making any payments or pledging <br />any security to the repayment of the Notes. The Bank is coordinating the drafting and <br />execution of the documents, and Bond Counsel will be issuing an opinion that the <br />revisions do not adversely affect the tax-exempt status of the Notes. <br />If you have any questions, please call Dan Andersen at 612.977.8290.