Title
Resolution - Approval of Unsecured Debt Issuance - R Kruger
Other Info
Submitted By: Randy Kruger
Department: Chief Financial Officer
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session.
Discussion
To continue to fund its capital improvement budget and operating budget for both its distribution and transmission lines of business, Pedernales Electric Cooperative, Inc. (the "Cooperative") is assessing available financing options in consideration of the financial health of the Cooperative and in the best interests of the Cooperative.
In November 2024 (2024-332), the Cooperative authorized the increase of its unsecured credit facilities by $100,000,000 in the aggregate amount not to exceed $605,000,000, the increase of its commercial paper program from $200,000,000 to $300,000,000, and the extension and amendment to various credit agreements.
The Cooperative wishes to establish a new credit facility of $300,000,000, and in an aggregate amount not to exceed $905,000,000 for its unsecured credit facilities to continue to provide increased flexibility in financing the operations and expenses of the Cooperative.
Body
WHEREAS, to continue to fund its capital improvement budget and operating budget for both its distribution and transmission lines of business and in the best interests of the Cooperative, the Cooperative requires a $300,000,000 commitment (for an unsecured credit facility from one or more lenders);
WHEREAS, the Cooperative is currently a party to the following short-term unsecured credit agreements in the aggregate amount up to $305,000,000: (i) a 364-Day Credit Agreement, dated as of December 4, 2020 (as heretofore amended), with Bank of America, N.A., CoBank, ACB and JPMorgan Chase Bank, N.A. in the authorized amount up to $105,000,000, (ii) a Second Amended and Restated 364-Day Revolving Credit Agreement with CoBank, ACB, dated October 19, 2023 (as heretofore amended) in the authorized amount up to $100,00...
Click here for full text