On May 19th, 2014 Harrisburg Board of School Directors unanimously voted to enter into agreement to refinance a 2013 Bond, a 2009 Series D Bond issue of $72 million and terminate a 2003 RBC Swap.
In this video an attorney from the law firm of Stevens & Lee gave a brief explanation of the refinancing and the Swap termination, the cost of the termination fee was not discussed, nor did any member of the board ask. Chief Recovery Officer Gene Veno stated on June 16th that the termination cost of the Swap was $6,667,800. Lets take a vote.
$74,850,000 Variable Rate School Revenue Bonds. Series D 2009 OS.
Archive video September 21, 2009. : Vote to approve 133 million dollar bond issue.
Archive video March 30, 2009 James Losty of RBC. The need to refinance.
Jeff Bader former business administrator of the Harrisburg School District. The variable rates could go up to 24 percent.
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The Swap terminated was part of a 2003 Harrisburg School District Financing Package.
The RBC Fixed Payer Swap is in the notional amount of $22,024,500, which is equal to 30% of the $73,415,000 principal amount of the 2003 Authority Bonds outstanding as of its effective date (the “RBC Fixed Notional Amount”). Pursuant to the RBC Fixed Payer Swap, The Harrisburg Authority periodically makes a payment to RBC in an amount equal to the RBC Fixed Notional Amount computed at a fixed rate of 5.25% per annum and RBC periodically makes a payment to The Harrisburg Authority in an amount equal to the RBC Fixed 2 Notional Amount computed on the basis of a percentage (63%) of the then applicable 1-Month LIBOR plus a spread of 0.20%.
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Archive May 20, 2014.
Harrisburg School District Board of School Directors unanimously voted to approve the issuance of:
School Revenue Bonds Series A 2014.
School Revenue Bonds Series B 2014 Fixed rate Not to exceed. $40,320,000
School Revenue Bonds Series C 2014 Variable rate Not to exceed. $49,680,000
The board voted to terminate a 2009 Swap with RBC with a notional amount of $22,024,500
We will provide more financial information related to the cost of issuance and Swap termination fees once the school district provides the information.
APPROVING THE ISSUANCE BY THE STATE PUBLIC SCHOOL BUILDING AUTHORITY (THE "AUTHORITY") OF ITS SCHOOL REVENUE BONDS, SERIES A OF 2014 (THE SCHOOL DISTRICT OF THE CITY OF HARRISBURG PROJECT) (THE "AUTHORITY BONDS"), IN ORDER FOR THE AUTHORITY TO REFUND CERTAIN OUTSTANDING INDEBTEDNESS ORIGINALLY ISSUED TO ACQUIRE AND LEASE A LEASEHOLD INTEREST IN CERTAIN REAL ESTATE, INCLUDING BUILDINGS, FIXTURES, IMPROVEMENTS, FURNISHINGS AND EQUIPMENT LOCATED THEREON, FROM THE SCHOOL DISTRICT; AUTHORIZING AND APPROVING THE UNDERTAKING OF A PROJECT BY THIS SCHOOL DISTRICT TO REFUND CERTAIN OUTSTANDING INDEBTEDNESS ORIGINALLY INCURRED TO ACQUIRE AND SUBLEASE SUCH LEASEHOLD INTEREST FROM THE AUTHORITY; AUTHORIZING THE INCURRENCE OF LEASE RENTAL DEBT BY THIS SCHOOL DISTRICT IN THE MAXIMUM PRINCIPAL AMOUNT OF $25,000,000 PURSUANT TO THE LOCAL GOVERNMENT UNIT DEBT ACT (THE "DEBT ACT"); AUTHORIZING AND DIRECTING THE PREPARATION, CERTIFICATION AND FILING WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE COMMONWEALTH OF PENNSYLVANIA OF AN APPLICATION AND TRANSCRIPT OF PROCEEDINGS, INCLUDING THE DEBT STATEMENT REQUIRED BY THE DEBT ACT; AUTHORIZING AND DIRECTING THE PREPARATION AND EXECUTION OF A CERTIFICATE SETTING FORTH THIS SCHOOL DISTRICT'S BORROWING BASE, AND AUTHORIZING AND DIRECTING PAYMENT OF ANY NECESSARY FILING FEES; APPROVING THE EXECUTION AND DELIVERY OF A THIRD AMENDMENT TO LEASE AGREEMENT BETWEEN THIS SCHOOL DISTRICT, AS LESSOR, AND THE AUTHORITY, AS LESSEE; APPROVING AND SETTING FORTH THE REMAINING USEFUL LIFE OF THE PROJECT; APPROVING THE EXECUTION AND DELIVERY OF A THIRD AMENDMENT TO SUBLEASE AGREEMENT BETWEEN THE AUTHORITY, AS SUBLESSOR, AND THIS SCHOOL DISTRICT, AS SUBLESSEE, AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE ASSIGNMENT THEREOF BY THE AUTHORITY; APPROVING THE PAYMENT OF SUBLEASE RENTALS AND THE INCLUSION OF SUBLEASE RENTALS PAYABLE PURSUANT TO THE THIRD AMENDMENT TO SUBLEASE AGREEMENT IN THE BUDGET OF THIS SCHOOL DISTRICT FOR EACH FISCAL YEAR AND PLEDGING THE SCHOOL DISTRICT'S FULL FAITH, CREDIT AND TAXING POWER FOR THE BUDGETING, APPROPRIATION AND PAYMENT OF THE SUBLEASE RENTALS; AUTHORIZING AND DIRECTING THE PREPARATION AND FILING OF ANY STATEMENTS AND REPORTS REQUIRED TO QUALIFY THE DEBT FOR EXCLUSION FROM THE APPROPRIATE DEBT LIMIT AS SUBSIDIZED; AUTHORIZING THE INCLUSION OF INFORMATION ABOUT THIS SCHOOL DISTRICT IN A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT TO BE ISSUED BY THE AUTHORITY AND THE DISTRIBUTION OF SUCH PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT IN CONNECTION WITH THE MARKETING OF THE AUTHORITY BONDS; APPROVING THE EXECUTION AND DELIVERY OF A SECOND AMENDED AND RESTATED INTERCEPT AGREEMENT, A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE AGREEMENT; MAKING CERTAIN FINDINGS WITH REGARD TO THE REDEMPTION OF CERTAIN OBLIGATIONS HERETOFORE ISSUED BY THIS SCHOOL DISTRICT; RATIFYING PRIOR ADVERTISEMENT AND DIRECTING FURTHER ADVERTISEMENT; APPOINTMENT OF PROFESSIONALS; AUTHORIZING PROPER OFFICERS OF THIS SCHOOL DISTRICT TO TAKE OTHER APPROPRIATE ACTION; REPEALING INCONSISTENT RESOLUTIONS; SETTING FORTH THE EFFECTIVE DATE OF THE RESOLUTION; AND PROVIDING FOR THE SEVERABILITY OF PROVISIONS OF THIS RESOLUTION.
AUTHORIZING A REFUNDING PROJECT TO BE FINANCED THROUGH THE ISSUANCE OF THREE SERIES OF GENERAL OBLIGATION BONDS UNDER A LOAN AGREEMENT WITH STATE PUBLIC SCHOOL BUILDING AUTHORITY; AUTHORIZING THE EXECUTION AND DELIVERY OF SUCH BONDS AND LOAN AGREEMENT; APPROVING A BOND PURCHASE AGREEMENT FOR THE ISSUANCE AND SALE OF THE STATE PUBLIC SCHOOL BUILDING AUTHORITY'S SCHOOL REVENUE BONDS, SERIES B OF 2014 AND SERIES C OF 2014; APPROVING A BOND PURCHASE AGREEMENT FOR THE ISSUANCE AND SALE OF THE STATE PUBLIC SCHOOL BUILDING AUTHORITY'S SCHOOL REVENUE BONDS, SERIES D OF 2014; APPROVING THE MAXIMUM RATE OF INTEREST AND MATURITY DATES OF SUCH INDEBTEDNESS; MAKING A COVENANT FOR THE PAYMENT OF THE DEBT SERVICE ON THE GENERAL OBLIGATION BONDS; AUTHORIZING THE INCLUSION OF INFORMATION ABOUT THIS SCHOOL DISTRICT IN A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT TO BE ISSUED BY THE AUTHORITY AND THE DISTRIBUTION OF SUCH PRELIMINARY OFFICIAL STATEMENT AND OFFICIAL STATEMENT IN CONNECTION WITH THE MARKETING OF THE SERIES B OF 2014 BONDS AND SERIES C OF 2014 BONDS; APPROVING THE EXECUTION AND DELIVERY OF AN INTERCEPT AGREEMENT AND A CONTINUING DISCLOSURE AGREEMENT; MAKING CERTAIN FINDINGS WITH REGARD TO THE REDEMPTION OF CERTAIN OBLIGATIONS HERETOFORE ISSUED BY THIS SCHOOL DISTRICT; AUTHORIZING THE UNWIND OF AN INTEREST RATE MANAGEMENT AGREEMENT PREVIOUSLY EXECUTED WITH RESPECT TO ITS GENERAL OBLIGATION NOTE, SERIES OF 2009; PROVIDING FOR AN OUTSTANDING INTEREST RATE MANAGEMENT AGREEMENT TO BE ASSIGNED AND TO RELATE TO CERTAIN GENERAL OBLIGATION BONDS TO BE ISSUED BY THE SCHOOL DISTRICT; APPROVING THE FORM OF AN INTEREST RATE MANAGEMENT PLAN; AND AUTHORIZING EXECUTION AND DELIVERY OF AN AMENDMENT TO OR RESTATEMENT OF SUCH INTEREST RATE MANAGEMENT AGREEMENT, IF NECESSARY; AUTHORIZING THE PREPARATION OF A DEBT STATEMENT AND A TRANSCRIPT OF PROCEEDINGS TO BE FILED WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT; APPOINTING A SINKING FUND DEPOSITORY FOR THE GENERAL OBLIGATION BONDS; RATIFYING PRIOR ADVERTISEMENT AND DIRECTING FURTHER ADVERTISEMENT; AUTHORIZING THE EXECUTION AND DELIVERY OF OTHER NECESSARY DOCUMENTS AND THE TAKING OF OTHER NECESSARY ACTION.
Photo/Natalie Cake
Updated with additional videos.