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City agrees to contingent assistance to restructure Asian Art Museum Foundation debt
Summary
The committee approved a city-backed restructuring that cuts the foundation—s outstanding principal, converts variable-rate notes to a 30-year fixed loan and cancels a costly swap, contingent on the foundation's fundraising and endowment performance.
The Budget & Finance Committee approved a package of settlement and assurance documents designed to stabilize the Asian Art Museum Foundation—s debt after the foundation—s 2005 variable-rate financing and associated swap deteriorated following insurer downgrades and markets disruptions.
Controller Ben Rosenfield summarized the negotiated package: lenders agreed to reduce the amount outstanding from about $119 million to roughly $98.4 million, cancel the interest-rate swap that had required collateral postings, and convert the obligation to a fixed-rate loan with an effective all-in rate the controller said was about 4.6 percent. The term was extended from the prior schedule to a 30-year amortization,…
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