SUMMARY:
CPS Energy requests City Council approval of the following:
A. An Ordinance authorizing a) an amendment and extension of the existing Revolving Credit Agreement providing liquidity for the City's $150,000,000 Electric and Gas Systems Commercial Paper Notes, Series A (the "Series A Notes"); and b) distribution of an Updated Offering Memorandum related to the CPS Energy Commercial Paper Notes; and
B. A Resolution authorizing the distribution of an updated Official Statement for an existing CPS Energy variable-rate debt, which is solely an updated informational filing.
The Ordinance includes a delegation of authority by the San Antonio City Council to CPS Energy's Designated Financial Officers, defined in the Ordinance to include the President and Chief Executive Officer ("CEO") and the Executive Vice President, Chief Financial Officer, and Treasurer of CPS Energy ("CFO"), to be exercised by either of such parties, to execute an amended Revolving Credit Agreement relating to the Series A Notes, and to undertake necessary matters relating to the foregoing.
BACKGROUND INFORMATION:
Commercial Paper ("CP") Liquidity: The Commercial Paper (or "CP") program has been amended numerous times since its inception in 1983 and now authorizes the issuance of three series of Commercial Paper Notes (the "Notes") in an aggregate principal amount not to exceed $600,000,000. CPS Energy currently has three Revolving Credit Agreements (collectively, the "Agreements") (one for each Series of Notes) that authorize a commitment amount of $600,000,000 in aggregate principal amount of Notes outstanding. CPS Energy may not have more principal amount of Notes outstanding than the combined commitment amount of the liquidity facilities. The liquidity facility provides the source of funds in the event that the CP dealers are not able to remarket the Notes in the financial markets.
CPS Energy's current CP liquidity is provided by J.P. Morgan Chase Bank National As...
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