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Resolution.docx
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING AND APPROVING A
CHANGE IN THE INTEREST RATE FOR THE NATURAL GAS
PURCHASE REVENUE BONDS, SERIES 2007B, ISSUED BY
THE LONG BEACH BOND FINANCE AUTHORITY AND THE
RELATED INTEREST RATE SWAPS , AUTHORIZING AND
APPROVING CERTAIN DOCUMENTS AND ACTIONS
RELATING THERETO, AND DELEGATING AUTHORITY TO
OFFICERS IN CONNECTION THEREWITH
WHEREAS, the City of Long Beach (the “City”) is a municipal corporation and charter city duly organized and existing un der its charter and the Constitution of the State of California; and
WHEREAS, the Long Beach Bond Finance Authority (the “Authority”) has heretofore issued its Long Beach Bond Finance Authority Natural Gas Purchase Revenue Bonds Series 2007B (the “Bonds”) pursuant to the Trust Indenture, dated as of September 1, 2007, as supplemented on August 1, 2009, between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Indenture”) in order to finance the acquisition of a long-term supply of natural gas, for sale to the City over a period of years; and
WHEREAS, the Bonds are bearing interest at a rate equal to 67% of three - month LIBOR plus a spread of 1.41% for the Bonds maturing on November 15, 2025,
1.43% for the Bonds maturing on No vember 15, 2026, 1.45% for the Bonds maturing on November 15, 2027, and 1.55% for the Bonds maturing on November 15, 2033, in each case subject to a maximum rate of 15%; and
WHEREAS, the Interest Rate Swaps related to the Bonds contain floating RES-23-0089
2 RFA:bg A23-01322 (05-12-2023)
Resolution.docx
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802
rates of 67% of three-month LIBOR plus the applicable spread; and WHEREAS, the LIBOR Rate is being discontinued as of June 30, 2023; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. Finding s and Determination s. The Ci ty Council hereb y finds and determines that the foregoing recitals are true and correct.
Section 2. Approval of Authority Transaction. The City Council hereby approves the Authority’s plan, as described in Resolution No. LBBFA-2023-01 of the Authority adopted on March 30, 2023, pursuant to the Adjustable Interest Rate (LIBOR) Act, to convert, by operation of law, the interest rate on the Bonds from 67% of three- month LIBOR plus the applicable spread to 67% of three-month Term SOFR (plus the applicable credit spread adjustment) plus the applicable spread on the first interest reset date after June 30, 2023. No other changes are being made to the Bonds. Also pursuant to the Adjustable Interest Rate (LIBOR) Act, references to “LIBOR” in the Indenture with respect to the definitions of “Interest Rate Swaps,” “LIBOR Rate Determination Date” and, for the calculation of Redemption Price, the “Spread Premium” will convert, by operation of law, to Term SOFR. References to “LIBOR” in any ancillary documents relating to the Bonds will also be amended to refer to “Term SOFR.”
The City Council hereby also approves the Authority’s plan, as described in Resolution No. LBBFA-2023-01 of the Authority adopted on March 30, 2023 to amend each of the Interest Rate Swaps to (i) convert the floating rate from 67% of three-month LIBOR plus the applicable spread to 67% of three-month Term SOFR (plus the applicable credit spread adjustment) plus the applicable spread, (ii) change the compounding convention to match the compounding convention for setting the interest rate on the Bonds, (iii) eliminate the 15% cap on the floating rates, and (iv) increase the fixed rates to compensate for the change in the compounding convention (taking into account the effect of elimination of the 15% cap), all to be effective on the first interest rate reset date after June 30, 2023.
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28 Section 3. Official Actions. The Designated Officers, the City Clerk and any and all other officers of the City are hereby authorized and directed , for and in the name and on behalf of the City, to do any and all things and take any and all actions, including execution and delivery of any and all documents and certificates which they, or any of them, may deem necessary or advisable in order to consummate the transactions contemplated herein.
Section 4. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of ____ J_u_n_e_1_3 ____ , 2023 by the following vote:
Ayes:
Noes:
Absent:
Councilmembers: Zendejas, Allen, Duggan, Supernaw, Kerr, Saro, Uranga, Austin , Ricks-Oddie.
Councilmembers : None.
Councilmembers: None.
Recusal( s): Councilmembers None.
RFA:bg A23-01 322 (05-12-2023}
Resolution .docx
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