20030519Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:MAY 19,2003
RE:DIRECT COMMUNICATIONS ROCKLAND LOAN AMENDMENT;
CASE NO.DCM-T-01-1.
Direct Communications Rockland is ready to finalize this borrowing but due to higher
than expected costs in the central office there are some changes being requested to Order No.
28880.There are two primary changes:1)increase in loan amount from $3,316,000to
$4,050,950,and 2)split into two loans,the Rural Utility Service (RUS)loan for $2,561,000and
a new Rural Telephone Bank (RTB)loan for $1,489,950.A hardship loan under RUS was not
available for this year for the total amount to receive the lowest interest rate.To facilitate
construction,the loan was split between the two lenders.
Both loans will be for a 17-year term with payment deferred for up to two years after
closing.The interest rates will be established at the time of closing based on the current posted
rate for RUS and RTB.All other terms will remain the same.
Staff recommends accepting the requested amendments.The additional fee due is $83.50
and will be paid prior to issuance of a subsequent order.
COMMISSION DECISION
Should the requested amendments be accepted?
Terri Carlock
udmemos/demt01.1 5.19.03
DECISION MEMORANDUM MAY 19,2003