Title
Resolution - Approval of Authorization for Credit Facilities for Issuance of PEC Letters of Credit - R Kruger
Other Info
Submitted By: Renee Oelschleger on behalf of Randy Kruger
Department: Chief Financial Officer
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session.
Discussion
The Cooperative has various existing long-term and short-term debt facilities (secured and unsecured) to finance the operations and expenses of the Cooperative.
To continue to deliver low-cost and reliable energy to its members, the Cooperative has obtained or expects to obtain bank commitments to issue direct pay and/or standby letters of credit in the aggregate amount of up to $100,000,000 to provide credit support in connection with its power purchase transactions with third parties and to provide credit support for such other corporate purposes of the Cooperative.
Body
WHEREAS, for the continued operations of the Cooperative, the Cooperative requires commitments for one or more letter of credit facilities under which Lenders (as defined below) will issue letters of credit on the Cooperative's behalf to applicable beneficiaries; and
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Cooperative authorizes the issuance or incurrence of short-term debt in the aggregate principal amount up to $100,000,000, which debt may be unsecured; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the short-term debt authorized herein may include one or more revolving credit facilities or letter of credit facilities or sub-facilities pursuant to multibank or separate bilateral agreements to be entered into with Bank of America, N.A. (or an affiliate), JPMorgan Chase Bank, N.A. (or an affiliate) and/or other lenders (collectively the "Lenders" and each a "Lender") selected by an Authorized Officer (as defined herein); and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, th...
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