20160127final_order_no_33456.pdf

Office of the Secretary
Service Date
January 27,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF COLUMBINE TELEPHONE )CASE NO.COL-T-15-02
COMPANY’S REQUEST TO ENTER INTO )
LOAN AGREEMENTS )ORDER NO.33456
________________________________________________________________________________________
)
On December 28,2015,Columbine Telephone Company,Inc.filed an Application
for authority to execute:(1)a Loan Agreement in an amount not to exceed $1,333,334 (“A
Loan”);(2)a line of credit agreement in an amount not to exceed $2,000,000 (“B Loan”);and (3)
an unsecured guaranty of payment (“Guaranty”)in favor of the Rural Telephone Finance
Cooperative (“RTFC”)for a term loan from RTFC to Columbine’s parent company Horizon
Communications,Inc.(“Horizon”)in the amount of $4,444,444 and a revolving line of credit in
the amount of $3,888,889 (collectively the “Horizon Loans”).Columbine is a certificated
telephone corporation organized under the laws of the State of Wyoming providing
telecommunication services,including local exchange service,within the State of Idaho.
Columbine claims that the loans will be used to upgrade local exchange service
facilities to,among other things,improve quality and reliability of service.It further claims that
the unsecured obligation to guarantee repayment of the loans to Horizon will not further
encumber Company assets or affect the revenue requirement of its regulated operations.
Specifically,Columbine states that the proceeds of the RTFC loans will finance the buildout of
Columbine’s incumbent local exchange carrier (“ILEC”)infrastructure,including a redundant
fiber ring,in Rexburg,Idaho,and fund the purchase of ten percent RTFC Subordinated Capital
Certificates.The B Loan line of credit will be used to provide short-term working capital for
general corporate purposes.Columbine further states that the Horizon Loans Guaranty is a
condition of the Horizon Loans by RTFC,and applies equally to each of Columbine’s sister
companies.’
Horizon Communications,Inc.is organized under the laws of the State of Wyoming,with the following wholly
owned subsidiaries:Silver Star Telephone Company,Inc.;Columbine Telephone Company,Inc.;Mountainland
Communications,LLC;Goldstar Communications,LLC;and World Visions Group,LLC.
ORDER NO.33456 1
STAFF RECOMMENDATION
Staff recommended approval of Columbine’s Application for the requested loan
authority.Staff further recommended the Commission order Columbine to file copies of all
agreement terms and final documents once they are executed.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Columbine,and this
Application,pursuant to Idaho Code §61-120,61-121,61-501,61-901,61-902,and 61-905
and the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 et seq.All fees have been paid
by Applicant in accordance with Idaho Code §6 1-905.
The Commission finds that Columbine’s filing satisfies the requirements of Idaho
Code §61-901 et seq.and the Commission’s Rules of Procedure 141-147,IDAPA
31.01.01.141-147.The purpose of the requested borrowing authority is appropriate and we find
this Application should be approved pursuant to Idaho Code §6 1-902.After reviewing the
Application and Staff’s recommendation,the Commission finds that it is reasonable and prudent
to allow Columbine to:
(1)Borrow up $1,333,334 from the RTFC;
(2)Obtain a line of credit not to exceed $2,000,000;and
(3)Provide an unsecured Guaranty of payment in favor of the RTFC for a
term loan from RTFC to Columbine’s parent company Horizon
Communications,Inc.(“Horizon”)in the amount of $4,444,444,and a
revolving line of credit in the amount of $3,888,889.
The Commission also directs Columbine to comply with certain conditions more fully
described below.
ORDER
IT IS HEREBY ORDERED that the Application of Columbine Telephone Company,
Inc.requesting Commission authority to borrow up to $1,333,334 from the RTFC;to obtain a
line of credit not to exceed $2,000,000;and to provide an unsecured Guaranty of payment in
favor of the RTFC for a term loan from RTFC to Columbine’s parent company Horizon
Communications,Inc.in the amount of $4,444,444,and a revolving line of credit in the amount
of $3,888,889,is approved.
ORDER NO.33456 2
IT IS FURTHER ORDERED that Columbine shall file the following documents with
the Commission:(1)copies of all final loan approvals,including documentation for advances;
(2)a copy of any executed collateral documentation;and (3)copies of all annual and special
financial reports,certification,covenant reports,and letters regarding these determinations.
IT IS FURTHER ORDERED that if Columbine is required to provide payment under
the Guaranty,nothing in this Order shall be construed as approval or denial of any ratemaking.
IT IS FURTHER ORDERED that nothing in this Order shall be construed to obligate
the State of Idaho to pay or guarantee in any manner whatsoever any security authorized,issued,
assumed,repurchased,defeased or guaranteed under the provisions of this Order.
IT IS FURTHER ORDERED that this authorization is without prejudice to the
regulatory authority of this Commission with respect to rates,services,accounts,evaluation,
estimates or determination of costs,or any other matter which may come before this Commission
pursuant to its jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that the issuance of this Order does not constitute
acceptance of Columbine’s exhibits or other material accompanying this Application for any
purpose other than the issuance of this Order.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order with regard to any
matter decided in this Order.Within seven (7)days after any person has petitioned for
reconsideration,any other person may cross-petition for reconsideration.See Idaho Code §61-
626.
ORDER NO.33456 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day’of January 2016.
-Ati
KRI [NE RAPER,ifCOMMISSIONER
ATTEST:
iLL.J /
Je D.Jewell j
Cdmmission Secretary
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ERIC ANDERSON,COMMISSIONER
ORDER NO.33456 4