Title
Fifth Third Bank Loan Commitment - Approval
History
As previously approved by the Board, Fifth Third Bank will be providing financing of the Ninety 7 Fifty on the Park project in the form of a three (3) year adjustable rate Revolving Line of Credit, converting to a seven (7) year adjustable rate Term Loan.
The attached Loan Commitment, and accompanying Summary of Terms and Conditions, formalized the Village’s agreement with Fifth Third Bank and outlines the details of our agreement. The following is a summary of the major terms and conditions:
Credit Facility - Three (3) Year Taxable General Obligation Revolving Line of Credit (RLOC), converting to a seven (7) year Term Loan, up to a maximum amount of $30M. Interest Rate applicable to RLOC is 30-day LIBOR plus 90bps; interest rate applicable to Term Loan is 30-day LIBOR plus 100bps or 10-year Treasury plus 175bps. The Term Loan will be amortized mortgage style with level debt service payments required. If at conversion to Term Loan, LIBOR exceeds 1%, Village must utilize an interest rate management agreement to synthetically fix the rate.
Security - General Obligation of the Village, secured by its Full Faith and Credit. Village to reserve a portion (the lesser of $30M or $65M minus the amount of bonds issued against the Master Bond Ordinance) of the issuance capacity provided by the Master Bond Ordinance adopted on September 19, 2011, providing for the issuance of up to $65,000,000 in General Obligation Bonds.
Reserve Fund - The Village will establish a Reserve Fund at Fifth Third Bank, utilizing general cash balances of the Village, in the amount of $1.5M. In addition, the Village will make monthly deposits into this fund for the payment of debt service on the outstanding RLOC or Term Loan. If at any time the reserve falls below the $1.5M balance, the Village has sixty (60) days to replenish the reserve. Interest earned on the Reserve Fund balance will be maintained within the Fund an...
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