Title
Resolution - Approval of Authorization for Amendments and Extensions and Expiration of CoBank Loan Facilities for the Cooperative - R Kruger
Other Info
Submitted By: Renee Oelschleger on behalf Randy Kruger Department: Chief Financial Officer
Financial Impact and Cost/Benefit Considerations: As discussed in Executive Session.
Discussion
The Cooperative has existing long-term and short-term debt (secured and unsecured) to finance the operations and expenses of the Cooperative with CoBank, ACB ("CoBank").
In November 2014, the Cooperative adopted a resolution approving up to $100 million for an unsecured 364-day revolving credit facility with CoBank and also approved up to a $250 million secured term loan with CoBank.
In March 2016, the Cooperative approved increasing the unsecured revolving credit facility with CoBank to an amount not to exceed $200 million.
In September 2016, the Cooperative approved decreasing the amount of the secured term loan with CoBank to $100 million.
In March 2018, the Cooperative by amendment reduced the unsecured revolving credit facility with CoBank to an amount not to exceed $80 million.
In December 2020, the Cooperative authorized decreasing the amount of the unsecured revolving credit facility with CoBank to an amount not to exceed $15 million with a term up to five years and increased the amount of the secured term loan with CoBank to $125 million for a period of two years.
However, in March 2021 the Cooperative executed an amendment to its unsecured revolving credit facility with CoBank to extend its term through August 31, 2021 prior to such amendments from December 2020 becoming effective.
To address the financial impact of Winter Storm Uri, 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 now would like to increase its unsecured revolving credit facility w...
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