TITLE
Recommendation to adopt resolution authorizing the City of Long Beach, California to issue Harbor Revenue Bonds Series 2010, in an amount not to exceed $630,000,000, acting by and through its Board of Harbor Commissioners (Board) to finance certain capital improvements at the Port of Long Beach, refund certain Harbor Revenue Bonds previously authorized by the City and issued by the Board, fund the reserve funds for the Series 2010 Bonds, and pay the cost of issuance of the Series 2010 Bonds. (District 2)
...DISCUSSION
The Board of Harbor Commissioners (Board) acting on behalf of the City of Long Beach (City) proposes to issue Harbor Revenue Bonds in an amount not to' exceed $230,000,000 (the New Money Series 2010A Bonds) and Harbor Revenue Refunding Bonds in an aggregate amount not to exceed $400,000,000 (the Refunding Series 201 OB Bonds), collectively the "Series 2010 Bonds," in an amount not to exceed $630,000,000. The Series 2010 Bonds will be secured and payable from the revenues of the Port of Long Beach. The objective of this debt restructuring is to reduce interest expense.
Cash Redemption of Series 2000A
On November 1,2000, the Harbor Department issued $275,000,000 in bonds to finance certain capital improvement projects. The Harbor Department will use available cash within the Harbor Revenue Fund to redeem the remainder of these Series 2000A Bonds in the par amount of $214,770,000 in order to reduce the interest rate expense related to these bonds resulting from a current annual interest rate of 5.5 percent. This series of bonds is callable on May 15, 2010 at 101 percent of par, which will increase the total amount needed to fund the redemption to $216,917,700.
New Money Series 2010A
The Board intends to issue New Money Series 2010A bonds in an amount not to exceed $230,000,000 to support the expansion and modernization of the shipping terminals on Piers 0, E, F and G, fund a reserve account not to exceed $13,800,000 and pay the cost of issu...
Click here for full text