Title
ORDINANCE AUTHORIZING THE ISSUANCE OF BOND ANTICIPATION NOTES IN AN AMOUNT NOT TO EXCEED $50,000,000 UNDER A LINE OF CREDIT
Body
To: The Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the Board of Commissioners (the "Board") of the Chicago Park District (the "District") adopt an ordinance authorizing the District to issue Bond Anticipation Notes (the "BANs") in an amount not to exceed $50,000,000 under a line of credit for the purpose of paying and reimbursing a part of the cost of building, maintaining, and improving parks as part of the District's capital program and the payment of capitalized interest and the costs of issuing the BANs.
The ordinance also authorizes the execution of a line of credit agreement and other documents in connection with the issuance of BANs as well as the security for repayment of the BANs by the issuance of bonds in the near future. The General Superintendent and authorized officers of the District are delegated the authority to do, or cause to be done, all things necessary for the execution and establishment of a line of credit program.
A. Background
On June 23, 2017, the District issued a Request for Proposal for a Revolving Line of Credit/Direct-Pay Letter of Credit (the "RFP"), which was forwarded to 15 banks and/or financial institutions with a response due date of July 28, 2017.
The District received six responses. After analysis of the proposals by the District's financial advisor, the District chose PNC Bank, National Association based on competitive pricing on rates as well as the risks associated with bond ratings as well as the ability to renew the line of credit for one additional year.
I. Recommendation (continued)
B. Key Terms and Conditions
PNC Bank National Association
Maximum Amount $50,000,000
Term 1 year, with a subsequent 180 day loan for
the current balance
Tax-Exempt Rate - Used 70% LIBOR + 0.65%
Unused 0....
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