20180719final_order_no_34110.pdf

Office of the Secretary
Service Date
July 19,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF COLUMBINE TELEPHONE COMPANY )CASE NO.COL-T-18-01
INC.FOR AUTHORITY TO GUARANTY )
LOAN TO HORIZON COMMUNICATIONS )ORDER NO.34110
IN THE AMOUNT NOT TO EXCEED )
$9,444,444 )
On June 19,2018,Columbine Telephone Company,Inc.applied for authority to
guarantee to repay the Rural Telephone Finance Cooperative ("RTFC")up to $9,444,444in loans
that Columbine's parent company,Horizon Communications,Inc.("Horizon"),will obtain from
RTFC.Based on our review of the record,we issue this Order granting the Application as noted
below.
THE APPLICATION
In its Application,Columbine states it is a Wyoming corporation that provides
telecommunication services,including local exchange service,in Idaho.Columbine is a wholly-
owned subsidiary of Horizon,and seeks to execute an unsecured guaranty to repay RTFC up to
$9,444,444 in loans that Horizon proposes to obtain from RTFC.Horizon's total debt would
consist of three term loans from RTFC to Horizon in the amounts of $3,502,263,$3,333,333,and
$2,608,848.Columbine claims the debt would be used,in part,to refinance a prior line of credit
from RTFC to Columbine,and to fund Columbine's capital expendituresfor the years 2018-2021.
Columbine further alleges that its proposed guaranty is a condition of RTFC's proposed loans to
Horizon,and that secured guaranties by each of Columbine's sister companies'also would be
required.
STAFF RECOMMENDATION
Staff recommended the Commission authorize Columbine to guarantee up to
$9,444,444 of Horizon's proposed debt to RTFC,with Columbine's total guaranty consisting of
three unsecured guaranties to RTFC in the amount of $3,502,263,$3,333,333,and $2,608,848.
1 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.;Millennium
Networks,LLC;and Goldstar Communications,LLC.
ORDER NO.34110 1
Staff further recommended the Commission order Columbine to file copies of all agreement terms
and final documents once the documents are executed.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
Columbine is a telephonecorporation as defined in Idaho Code §61-121,and a public
utility within the definition of Idaho Code §61-129.The Commission has jurisdiction over this
Application under Idaho Code §61-901,et seq.
Having reviewed the record,the Commission finds that the Application reasonably
conforms to Rules 141 through 147 of the Commission's Rules of Procedure (IDAPA
31.01.01.141-147),and that Columbine has paid all fees requiredby Idaho Code §61-905.Further,
the proposed guaranty would issue for a lawful purpose under Idaho Code §61-901,is within
Columbine's corporate powers,and is compatible with the public interest.The Commission thus
finds that it is reasonable to grant the Application by allowing Columbine to issue unsecured
guaranties of payment in favor of the RTFC,guaranteeing$9,444,444of RTFC's loans to Horizon,
with the total guaranty divided among three separate debt facilities,one for $3,502,263,one for
$3,333,333,and one for $2,608,848.
The Commission's decision to allow Columbine to guarantee the repayment of
Horizon's debt to RTFC is not an approval of the particular use to which the loan funds will be
put.This Order does not constitute a Commission determination or approval of the type of
financing or the related costs for ratemaking purposes.The Commission does not have before it in
this case,and therefore does not determine,how the issuance may affect Columbine's rates for
providing utility service to Idaho customers.
ORDER
IT IS HEREBY ORDERED that Columbine's Application is granted as discussed
above.Columbine may guarantee up to $9,444,444 of Horizon's debt to RTFC through three
unsecured debt facilities in the amount of $3,502,263,$3,333,333,and $2,608,848.
IT IS FURTHER ORDERED that Columbine shall file the followingdocuments 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 nothing in this Order,or any act or deed done or
performed in connection with this Order,shall be construed to obligate the State of Idaho to pay
ORDER NO.34110 2
or guarantee,in any manner whatsoever,any security authorized,issued,assumed,or guaranteed
under the provisions of this Order.
IT IS FURTHER ORDERED that this Order is without prejudice to the Commission's
regulatory authorityregarding rates,services,accounts,evaluation,estimates or determination of
costs,or any other matter that may come before this Commission pursuant to its jurisdiction and
authorityas provided by law.
IT IS FURTHER ORDERED that this Order does not constitute acceptance of
Columbine's exhibits or other material accompanyingthis 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.34110 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2018.
PAU KJELLÁNI ,PRESIDENT
KRI TINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\TELEPHONE\COL-T-18-01\COLTl801 order_ej docx
ORDER NO.34110 4