1 / 6

Special Called Board Meeting Authorization of new Portfolio III Bonds

Special Called Board Meeting Authorization of new Portfolio III Bonds. June 9, 2011. Agenda. Overview of Gas Authority debt - attached Results of bond pricing Board action – Authorize staff to accept proposed pricing and finalize issuance on bonds. June 9, 2011. Special Called Board Meeting.

kishi
Download Presentation

Special Called Board Meeting Authorization of new Portfolio III Bonds

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Special Called Board MeetingAuthorization of new Portfolio III Bonds June 9, 2011

  2. Agenda • Overview of Gas Authority debt - attached • Results of bond pricing • Board action – Authorize staff to accept proposed pricing and finalize issuance on bonds June 9, 2011 Special Called Board Meeting - 2 -

  3. Components of Gas Authority Liabilities • Total Liabilities – Audited Balance Sheet at 12/31/10$ 3,219,000,000 • Less: Main Street Prepayments – Limited-recourse debt - $ 2,481,000,000 FV of Derivatives, A/P and Due to Members- $ 446,000,000 • Net Portfolio III debt and other obligations$ 292,000,000 • All ownership interests in oil and gas reserves including interests owned through participation in Public Gas Partners • Storage inventory and seasonal working capital • Other miscellaneous gas supplies (e.g. landfill prepayment, etc.) June 9, 2011 Special Called Board Meeting - 3 -

  4. Rationale for Issuance of new Bonds Portfolio III debt is comprised of • 2 commercial bank lines of credit for MGAG and 3 lines for PGP Pool 3 • 2 series of short-term Notes with one maturing every 6 months, and • 2 issues of 10-year amortizing bonds, 1 each by MGAG and PGP Issuance of new Gas Authority Bonds • Reduces reliance on bank lines of credit and market access for additional Short-term Notes • Reduces total line of credit borrowings by $40 million and ST Notes by $10 million • Takes advantage of current historically low interest rate environment • Converts variable rate obligations to fixed rates over 5-year term • Maintains reasonable cash-flow flexibility over estimated lives of gas reserves • Intermediate term allows for repayment or refinancing as required by future project development and net cash flows • Utilizes Gas Authority’s higher credit rating minimizing project interest costs June 9, 2011 Special Called Board Meeting - 4 -

  5. MGAG/PGP Debt Summary * Available working capital may be utilized in lieu of lines of credit in order to minimize project interest costs ** Balance outstanding includes unamortized premium June 9, 2011 Special Called Board Meeting - 5 -

  6. Changes to Portfolio III Debt June 9, 2011 Special Called Board Meeting - 6 -

More Related