BRIT ISH COLUMBIA UTIL IT IES COMMISS ION ORDER NUMBER G‐116‐09 SIXTH FLOOR, 900 HOWE STREET, BOX 250 VANCOUVER, B.C. V6Z 2N3 CANADA TELEPHONE: (604) 660‐4700 web site: http://www.bcuc.com BC TOLL FREE: 1‐800‐663‐1385 FACSIMILE: (604) 660‐1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and an Application by Stargas Utilities Ltd. Alter Rates, Refinance and Acceptance of Gas Supply Contract BEFORE: D.A. Cote, Commissioner September 29, 2009 O R D E R WHEREAS: A. On July 29, 2009, Stargas Utilities Ltd. (“Stargas”) filed an application to Alter Rates, Refinance and Acceptance of Gas Supply Contract (the “Application”) with the British Columbia Utilities Commission (the “Commission”). The refinancing portion of the Application (the “Refinancing Application”) requests Commission approval of a term loan in the amount of $302,139 at an annual interest rate of 3.75 for a term of five years (“New Term Loan“); and B. On September 23, 2009, Stargas requested that the Commission fast track the Refinancing Application due to the October 1, 2009 closing date with its bank; and C. Stargas also requests Commission approval to use the proceeds of the New Term Loan to repay shareholder and affiliated company loans of $298,469; and D. In order to meet the financial covenants in the TD Bank Canada Trust’s commitment letter, Stargas requests Commission approval for shareholders’ to advance additional funds to Stargas at the annual interest rate of 6 percent; and E. Stargas proposes to defer and amortize the estimated transaction costs of $10,000 on a straight‐line basis over ten years; and F. The Commission has reviewed the Refinancing Application and finds that approval is warranted. …/2
BRIT ISH COLUMBIA UTIL IT IES COMMISS ION ORDER NUMBER G‐116‐09 2 NOW THEREFORE pursuant to section 50(2) of the Utilities Commission Act, the Commission determines as follows: 1. The Stargas Refinancing Application for a New Term Loan in the amount of $302,139 at an annual interest rate of 3.75 for a term of five years is approved. 2. The request to repay shareholder and affiliated company loans of $298,469 with the proceeds of the New Term Loan is approved. 3. The request for shareholders’ to advance additional funds to Stargas at an annual interest rate of 6 percent is approved. 4. The deferral and amortization of transaction costs over a period of 10 years is approved. 5. Stargas is to advise the Commission of the actual transaction costs. DATED at the City of Vancouver, in the Province of British Columbia, this 29 th day of September 2009. BY ORDER Original signed by: D.A. Cote Commissioner Orders/G‐116‐09_Stargas Refinancing
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