Title
Resolution - Approval of Authorization for Short-Term Debt Financing 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 various existing long-term and short-term debt (secured and unsecured) to finance the operations and expenses of the Cooperative.
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 obtain bank commitments for additional short-term debt in the amount of approximately $305,000,000.
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 short-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 short-term debt in the aggregate principal amount up to $305,000,000, which debt may be unsecured; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the short-term debt authorized herein may include a 364-day revolving credit facility and a 3-year revolving credit facility pursuant to separate multibank or bilateral credit agreements to be entered into with Bank of America, N.A. (or an affiliate) and/or one or more other lenders selected by an Authorized Officer, the form, terms and provisions of which agreements are hereby approved; and
BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the short-term debt authorized herein may include the establishment of a commercial paper program and the issuance of...
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