Title
Resolution - Approval of Defeasance of the Cooperative's Series 2002 Bonds - 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 outstanding its Pedernales Electric Cooperative, Inc. First Mortgage Bonds, 2002 Series A Bonds due in 2022 and 2032 (the "Series 2002 Bonds"), secured under the Indenture by the assets of the Cooperative.
The Cooperative has obtained or expects to obtain consents from holders of the Series 2002 Bonds to waive a condition precedent to the defeasance of the Series 2002 Bonds.
The Cooperative wishes to consider the defeasance of its Series 2002 Bonds.
Body
WHEREAS, the Cooperative evaluates the financial health of the organization and interest rates and its costs of capital on an ongoing basis; and
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, in the best interests of the Cooperative, that the Cooperative authorizes the defeasance of all or any portion of the Series 2002 Bonds; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Authorized Officers are hereby authorized to engage The Bank of New York Mellon and/or one or more affiliates ("BNY") to serve as escrow agent for such defeasance and to engage an independent certified accounting firm for escrow verification purposes and to engage any other firms or entities as may be necessary or desirable in connection with such defeasance;
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Authorized Officers are hereby authorized to solicit bids for and to purchase (or direct the escrow agent to purchase) such securities as may be required for deposit into an escrow account held by BNY for the defeasance of the Series 2002 Bonds;
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the form, terms, an...
Click here for full text