Attachment E
April 26, 2022 Letter from Bank of America
April 26, 2022
Gigi Decavalles
Director of Finance
City of Santa Monica
E-Mail: [email protected]
Dear Ms. Decavalles:
In light of the LIBOR transition, Bank of America, N.A. is providing this courtesy letter to the City of Santa Monica (the “City”) relating to the Credit Agreement dated May 1, 2008 between the Redevelopment Agency of the City of Santa Monica and Bank of America, N.A. and the related Conversion Notice dated January 30, 2012 (collectively, the “Credit Agreement”).
Certain USD LIBOR tenors and many global IBORs ceased publication on 12/31/2021, with the remaining USD LIBOR tenors to cease publication after June 30, 2023, including the 6-month USD LIBOR tenor currently utilized to set interest payments in the Credit Agreement. As such, per Sections 1.4(d) and 2.4 of the Credit Agreement, effective July 1, 2023 and thereafter, interest on the City’s term loan will reset at Fed Funds + 1.70%, following the USD LIBOR cessation expected on June 30, 2023.
This discussion reflects Bank of America’s understanding of benchmark reform matters as of today. The content is subject to change without notice, and Bank of America accepts no obligation to update or correct the information and accepts no liability for the impact of reliance on, or any decisions made based upon, the information, views or opinion expressed herein. Clients should consult their financial, legal, accounting, tax or other professional advisors on matters relating to the possible implications of a change or discontinuation of LIBOR or benchmark interest rates.
Please do not hesitate to reach out, should you have any questions or concerns.
Thank you,
Stephanie Apsey
Vice President
Public Sector Banking
Bank of America, N.A.
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cc:
David Carr Susan Cola Melissa Lindley
City of Santa Monica
[email protected]
City of Santa Monica
[email protected]
City of Santa Monica
[email protected]
Louis M. Choi Wes Hough
Public Resources Advisory Group
[email protected]
Public Resources Advisory Group
[email protected]