G&Ts Work Together to Negotiate Indentures
Posted on Sep 30, 2013 in Corporate Governance, Financing | Comments Off on G&Ts Work Together to Negotiate Indentures
A group of 10 regional generation and transmission (G&T) cooperatives recently worked with the Rural Utilities Service (RUS) to convert existing mortgages to indentures, facilitating easier access to private financing for the electric coops they serve in Missouri, Oklahoma, Iowa, North Dakota, and South Dakota. Through the conversions, which were successful in part due to the unique relationship between each of the G&Ts and their respective “Super G&T,” each organization was able to switch from a traditional RUS mortgage—which limits borrowing from other lenders without the approval of a lien accommodation—to a more flexible indenture agreement. Click here to read more.
