Proposal Alert
Expired RFP

Request for Proposals for Letter of Credit Facilities or Direct Placements

LIPA seeks letter of credit facilities or direct placements from financial institutions to backstop $50 million or more in credit capacity, with terms of 3, 4, or 5 years, primarily to refinance 2023A-2, 2023B, and 2023C Revenue Bonds. Banks must propose pricing on LOC commitment fees, advances, term loans, and default rates, with LIPA preferring LOCs terminable without penalty in year one. Current direct placement providers may propose fee amendments or extensions.

LIPA NY

Important dates

  • Published

  • Submission deadline

    Deadline passed

AI overview

The Long Island Power Authority (LIPA) is soliciting proposals from financial institutions to provide direct pay letter of credit facilities (LOCs) or direct placements (DPs). LIPA is seeking qualified firms to provide LOCs or DPs for periods extending for three (3), four (4), or five (5) years. Banks are asked to propose individually for a minimum of $50 million credit capacity. LIPA's priority is to replace DPs relating to the 2023A-2, 2023B, and 2023C Revenue Bonds. LIPA strongly prefers LOC proposals that would allow LIPA to terminate at any time, upon written notice, without an early termination penalty during the first year only. Current DP providers are welcome to propose extensions or fee amendments. If multiple firms are selected by LIPA, LIPA may choose to work with one of the selected firms to act as an agent for itself and the other firm(s). Proposals must include: Bank ratings and contact information with credit capacity amount; LOC annual commitment fees for 3, 4, or 5-year terms; adjustments for rating upgrades/downgrades; up-front, annual or other fees; interest rate structures for advances and term loans; default rates; DP pricing expressed as spread to SIFMA Index and SOFR Index; DP Term Out Provisions; legal expenses with not-to-exceed amounts and hourly rates; renewal timing and process; acceptance or exceptions to Bank Agreement terms; conflict of interest disclosure; litigation and administrative proceedings disclosure.

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