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HomeMy WebLinkAbout19960927Decision Memo.docDECISION MEMORANDUM TO: COMMISSIONER NELSON COMMISSIONER SMITH COMMISSIONER HANSEN MYRNA WALTERS DON HOWELL STEPHANIE MILLER DAVE SCHUNKE WELDON STUTZMAN SUSAN HAMLIN GARY RICHARDSON TONYA CLARK BEV BARKER WORKING FILE FROM: TERRI CARLOCK DATE: SEPTEMBER 27, 1996 RE: CAMBRIDGE TELEPHONE COMPANY FINANCING FOR PURCHASE FROM U S WEST, CASE NO. CAM-T-94-1 RECOMMEND: APPROVAL Cambridge Telephone Company has filed supplemental information related to the financing for the purchase of the U S WEST exchange of Council. The purchase price has been reduced by the switch replacement contribution so the ultimate financing is also reduced. The proposed closing date is October 17, 1996. The maturity for the loan would be 15 years with the interest rate to be determined at the time of closing. The term sheet for Cambridge Telephone Company is attached showing National Bank of Cooperatives (CoBank) as the lender, net purchase price, loan amount, interest rate options and other terms. STAFF RECOMMENDATION Staff recommends approval of the proposed loan to purchase the exchange. COMMISSION DECISION Should the loan authority be approved for the purchase of the exchange? Terri Carlock TC:udmemos/dmcamt941.tc