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LCRA staff to extend $200 million private bank note facility to support capital financing
Summary
At the Sept. 24 meeting staff requested authority to extend an existing $200 million private bank note credit facility for three years to support short-term financing of LCRA capital projects; board approved staff to negotiate and execute the extension.
The Lower Colorado River Authority board on Sept. 24 authorized staff to negotiate and execute an extension of an existing credit facility intended to support issuance of tax-exempt and taxable private bank notes on behalf of LCRA.
Finance director Jim Travis told the board, “This agenda item is requesting authorization to negotiate and execute an extension of an existing credit facility that we have…that will allow us to support issuance of tax exempt and taxable private bank notes on behalf of LCRA.” He described the facility as a short-term financing tool used to fund construction and other capital activity until projects are converted to long-term debt.
Staff said the privately placed facility is for $200,000,000 and that they are seeking a three-year extension (the facility was initially a three-year deal). Travis said the two-step financing process—issuing short-term notes and later refunding into long-term debt—can yield lower overall debt service costs and provide timing flexibility for long-term bond issuance.
Travis told the board the facility currently has about $150,000,000 outstanding and that the facility expires in November; staff expects to execute the extension prior to expiration. In response to a board question, staff said aggregate revolving lines available are about $750,000,000 (the exact amount currently advanced was not provided at the meeting).
The board moved and approved the item by voice vote. No detailed roll-call tally was provided in the meeting record.
