20040517_842.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:May 14, 2004
RE:CAMBRIDGE TELEPHONE COMPANY'S AMENDMENT TO
AUTHORITY TO BORROW UP TO $17.5 MILLION;
CASE NO. CAM- T -03-, Order No. 29399.
Cambridge Telephone Company (Cambridge) requests an amendment to its authority to
borrow up to $17.5 Million from the Rural Telephone Utilities Service (RUS) and Rural
Telephone Bank (RTB), Order No. 29399. The proposed financing was expected to be
structured with three loans: a RUS loan of $7 500 000 that qualifies for the 5% hardship interest
rate with a 15-year loan maturity, a RUS loan of $6 096 000 and a RTB loan of$3 547 950. The
amendment is to recognize that RUS , in the loan agreement dated April 1 , 2004, now proposes
four loans instead of three. The total amount remains the same at up to $17.5 Million but the
loan details are slightly different. The loans will be as follows:
1) RUS note for $6 096 000 with the interest rate to be determined prior to taking the
advance and a maturity date of March 1 2019.
2) RUS note for $4 857 000 with the interest rate of 50/0 and a maturity date of March 1
2019.
3) RUS note for $2 643 000 with the interest rate of 5% and a maturity date of March 1
2012.
4) RTB note for $3,457 950 with the interest rate to be determined prior to taking the
advance and a maturity date of March 1 2019.
The remaining terms and purpose of the notes continue to be consistent with Order No. 29399.
DECISION MEMORANDUM MAY 14, 2004
ST AFF RECOMMENDATION
Staff recommends approval of the loan amendment. All other terms and conditions
Order No. 29399 remain the same.
COMMISSION DECISION
Does the Commission approve the requested amendment for the four loans as stated?
J ~1/~CwJo eft
Terri Carlock
TC:udmemos/DM cam-03-2 5.
DECISION MEMORANDUM MAY 14, 2004