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LCRA TSC authorizes staff to negotiate up to $100 million private note with Frost Bank
Summary
The LCRA Transmission Services Corporation board authorized staff to negotiate a note purchase agreement with Frost Bank for up to $100 million (Series F private note program) to supplement existing short‑term debt facilities; the three‑year facility would reset monthly with initial market quotes around 4.5 percent.
The LCRA Transmission Services Corporation board authorized staff Wednesday, February 2025, to negotiate a Series F private note purchase agreement with Frost Bank for an amount up to $100 million.
The board approved creating the private note program to complement existing TSC short‑term debt facilities, which the presenter said total $450,000,000. Staff said the short‑term facilities provide initial funding for transmission capital activity and allow the utility to issue debt as needed and refinance into long‑term debt when market conditions are appropriate.
Jim (role not specified), who presented the financing item, described the facility as a three‑year program that would be reset monthly. When asked about interest rates, Jim said the rate would be “about 4 and a half percent,” and that the rate would be reset on a monthly basis depending on short‑term market rates.
The item was discussed with the finance committee the prior month, according to the presentation; the board voted to authorize staff to negotiate the note purchase agreement with Frost Bank. The motion carried on a voice vote; the transcript does not record individual member roll‑call votes.
Staff described the facility as providing “extended flexibility and timing of these refinancing transactions,” allowing the TSC to use short‑term taxable or tax‑exempt debt for ongoing transmission capital activity before refinancing into longer‑term debt when appropriate.
No additional conditions, bidders, or contract terms were provided in the transcript; the board record indicates only authorization to negotiate the purchase agreement.
