20230705Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
LEGAL
FROM:JOSEPH TERRY
CLAIRE SHARP
DATE:JULY 5,2023
RE:COLUMBINE TELEPHONE COMPANY,INC.'S APPLICATION FOR
AUTHORIZATION TO GUARANTY LOANS IN AN AMOUNT NOT TO
EXCEED $64,777,106;CASE NO.COL-T-23-01
BACKGROUND
On June 14,2023,Columbine Telephone Company,Inc.("Columbine"or "Company")
filed an application to execute a guaranty of payment in favor of the Rural Telephone Finance
Cooperative ("RTFC")guaranteeingpayment of a term loan to Columbine's parent company,
Horizon Communications,Inc ("Horizon"),in the amount of $64,777,106.The Commission
received the filing fee of $1,000 on the same day.
STAFF ANALYSIS
The proposed debt meets the requirement under Idaho Code §61-901.It is for more than
one year and is for the acquisition of property;for the construction,completion,extension,or
improvement of its facilities;for the improvement or maintenance of its service;or refinancing
of its current obligations.The filing complies with the IDAPA 31.01.01.141.
The total amount of $64,777,106 consists of four notes:Note A for $8,000,000,Note B
for $18,054,742,Note C for $23,722,364,and Note D is for $15,000,000.The requested
guaranty is a condition of the loan which will be used to finance Horizon's capital expenditures
from 2023 to 2026 which will improve quality and reliability of service.More specifically,Note
C will be used to finance capital expenditures for a fiber-to-the-home project in Rexburg,Idaho
DECISION MEMORANDUM -1 -JULY 5,2023
and surrounding areas and Note D will be used to finance or refinance the acquisition of
telecommunication assets in Ada County,Idaho.
STAFF RECOMMENDATION
Staff recommends the Commission authorize Columbine to issue a guaranty of
$64,777,106 as requested in the Application and to execute and deliver the Guaranty to RTFC.
Staff recommends the Commission order Columbine to file copies of all agreement terms
and final documents when they become available.
COMMISSION DECISION
Does the Commission wish to authorize Columbine to provide a guaranty for the loan for
$64,777,106?
Does the Commission wish to order Columbine to file copies of all agreement terms and
final documents when they become available?
oseph rry
Udmemos/COL-T-23-01 Decision Memo
DECISION MEMORANDUM -2 -JULY 5,2023