Title
Resolution - Approval of Authorization for Amendments and Extension to Short-Term Debt Financing for the Cooperative - R Kruger
Other Info
Submitted By: Randy Kruger
Department: Chief Financial Officer
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session.
Discussion
The Cooperative previously authorized in November 2020 short-term debt facilities (unsecured) to finance the operations and expenses of the Cooperative in an amount not to exceed $305,000,000.
To continue to fund its capital improvement budget and operating budget, the Cooperative is assessing its ongoing financial structure and options available in consideration of the financial health of the Cooperative and in the best interests of the Cooperative.
The Cooperative wishes to extend its 364-day revolving credit facility with Bank of America, N.A. and the other lenders thereunder (or affiliates) for a period up to one year and to effect a repricing and other amendments.
Body
WHEREAS, the Cooperative is currently a party to that certain 364-Day Credit Agreement, dated as of December 4, 2020 (as heretofore amended, the "Credit Agreement"), with Bank of America, N.A., CoBank, ACB and JPMorgan Chase Bank, N.A. (collectively, the "Lenders") pursuant to which the Lenders agreed to make loans to the Cooperative in an aggregate outstanding principal amount not to exceed $105,000,000; and
WHEREAS, the Cooperative wishes to amend the Credit Agreement in order to extend the maturity for a period of up to one year and to effect a repricing and other amendments (collectively, the "Amendments"); and
WHEREAS, the Board has been presented with the principal terms of the Amendments to be entered into with the Lenders and desires to delegate to the Authorized Officers (as defined below) to negotiate and approve the final form of the Amendments and any other documentation governing the 364-day revolving credit facility setting forth such terms, and hereby finds that it is ...
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