Share to Facebook Share to Twitter Bookmark and Share
File #: 2010-1078    Version:
Type: Resolution Status: Died due to expiration of legislative council session
File created: 11/4/2010 In control: Committee on Finance and Law
On agenda: Final action:
Enactment date: Enactment #:
Effective date:    
Title: Resolution Authorizing the invitation to tender and purchase of a portion of the city of Pittsburgh (Commonwealth of Pennsylvania) taxable general obligation bonds, series C of 1998; authorizing the use of funds available in a restricted account to purchase bonds; authorizing Boenning & Scattergood, Inc. to act as dealer manager, Bondholder Communications Group, LLC to act as information and tender agent, and Pepper Hamilton LLP to act as tender counsel; authorizing the director of finance to determine which bonds to purchase;
Indexes: BOND
Attachments: 1. 2010-1078.doc, 2. 2010-1078 VERSION 2.doc
title
Resolution Authorizing the invitation to tender and purchase of a portion of the city of Pittsburgh (Commonwealth of Pennsylvania) taxable general obligation bonds, series C of 1998; authorizing the use of funds available in a restricted account to purchase bonds; authorizing Boenning & Scattergood, Inc. to act as dealer manager, Bondholder Communications Group, LLC to act as information and tender agent, and Pepper Hamilton LLP to act as tender counsel; authorizing the director of finance to determine which bonds to purchase;
body
WHEREAS, the City of Pittsburgh, Pennsylvania (the “City”) issued the City of Pittsburgh (Commonwealth of Pennsylvania) Taxable General Obligation Pension Bonds, Series C of 1998 (the “1998C Bonds”) and its General Obligation Bonds, Series A of 2002 (the “2002A Bonds”, collectively with the 1998C Bonds”, the “Bonds”); and
WHEREAS, the City currently has a Restricted Bond Retirement Account (the “Restricted Account”) with a cash balance of approximately $45,000,000, which funds are specifically restricted to the retirement of the City's debt; and
WHEREAS, due to current market conditions, the City has determined that it is in the City's best financial interest to purchase a portion of the Bonds certain of the 1998C Bonds and to escrow certain of the 2002A Bonds until their first optional redemption with funds from the Restricted Account; and
WHEREAS, the City, through Bondholder Communications Group, LLC (the “Information and Tender Agent”) distributed an Invitation to Offer to Sell Bonds (the “Invitation”), which is attached as Exhibit “A,” to the holders of the 1998C Bonds on October 14, 2010; and
WHEREAS, pursuant to the terms of the Invitation, holders of the 1998C Bonds may offer to sell their respective 1998C Bonds to the City at prices determined by a reverse auction process, and the City may within its discretion accept or reject any or all of the 1998C Bonds offered for repurchase.
WHEREAS, to effect the defeas...

Click here for full text