Title
Resolution - Approval of Authorization for Amendments and Extensions to CoBank Loan Facilities for the Cooperative - R Kruger
Other Info
Submitted By: Robyn Miller 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 to $100 million with CoBank.
In March 2018, the Cooperative by amendment reduced the unsecured revolving credit facility to an amount not to exceed $80 million.
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 now would like to further decrease the amount of the unsecured revolving credit facility with CoBank to an amount not to exceed $15 million and extend its availability annually for a period up to five years. In addition, the Cooperative now would like to increase the amount of the secured term loan to $125 million and extend it for a period of two years.
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 an increase in its secured term loan, a decrease to its unse...
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