Title
Resolution - Approval of Authorization for Additional Long-Term Debt Financing for the Cooperative on a Delayed Funding Basis - 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 has various existing long-term and short-term debt (secured and unsecured) to finance the operations and expenses of the Cooperative. In November 2020 the Board authorized up to $200,000,000 in long-term debt with NYL Investors LLC and/or one or more affiliates. In December 2020, the Board authorized up to $400,000,000 in long-term debt with BofA Securities Inc. and/or one or more affiliates ("BofA") as placement agent.
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 has obtained or expects to issue or incur additional long-term debt in an amount up to $150,000,000, which debt will be secured under the Master Indenture of Trust dated as of January 1, 1993 (as amended, the "Indenture") by substantially all the assets of the Cooperative. Such debt may be issued no more than 13 months after the date such debt has been priced or committed.
Body
WHEREAS, to continue to fund its capital improvement budget and operating budget in the next five years and in the best interests of the Cooperative, the Cooperative requires commitments for long-term debt financings; and
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Cooperative authorizes the issuance or incurrence of long-term debt in the aggregate principal amount up to $150,000,000, which debt will be secured under the Indenture by substantially all the assets of the Cooperative and may be issued no more than 13 months afte...
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