Title:
Title
Approval of a Waiver of Conversion Notice and Other Actions Needed to Redeem the Outstanding 1997 Lease Revenue Bonds (ARCO Arena Acquisition)
End
FileID
File ID: 2018-01672
Location
Location: District 1
Recommendation:
Recommendation
Pass a Motion authorizing the City Treasurer, as City Treasurer and as Treasurer of the Sacramento City Financing Authority, to sign and approve a waiver-of-conversion notice and to take such other actions as are needed to redeem and cancel the outstanding 1997 Lease Revenue Bonds (ARCO Arena Acquisition).
Contact: Brian Wong, Debt Manager, (916) 808-5811; Colin Bettis, Senior Debt Analyst, (916) 808-8292, Office of the City Treasurer
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Waiver of Conversion Notice (signed by the Kings Arena Limited Partnership)
Description/Analysis
Issue Detail: The 1997 Lease Revenue Bonds (ARCO Arena Acquisition) (the "Bonds") were most recently remarketed on July 19, 2017, with a mandatory tender date of January 22, 2019. On that date, the issuer of the Bonds-Sacramento City Financing Authority ("SCFA")-must either (1) remarket the Bonds once more, thereby converting them to a new interest-rate mode; or (2) redeem the Bonds by paying all outstanding principal and any accrued interest. For redemption to occur, the Kings Arena Limited Partnership ("KALP") would have to provide SCFA with the necessary funds. The trustee under the indenture for the Bonds (the "Trustee") would then use the funds to pay to Bank of America, N.A., as the sole holder of the Bonds (the "Holder"), the outstanding principal and accrued interest.
KALP has confirmed in writing that it will provide SCFA with the funds needed for redemption by January 22, 2019. Accordingly, the Bonds will not be remarketed on that date and converted to a new interest-rate mode but instead will be redeemed and cancelled.
To accomplish the redemption, however, SCFA must first address a procedural technic...
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