- 8 - Each partner was obligated to make cash contributions upon notice from the management committee, as necessary to purchase the preexisting project assets from other partners, to pay project costs, and to pay costs incurred by the partnership. The partners were prohibited from making voluntary contributions to the partnership. Funding for the Project The partnership funded the Great Plains project from two sources: (1) About $550 million of equity contributions from the partners; and (2) a loan of about $1.5 billion provided under a credit agreement with FFB (the credit agreement) and guaranteed by DOE. Partners’ Equity Contributions The partners were required to contribute to the partnership $1 of equity for every $3 borrowed under the credit agreement.6 Upon the occurrence of various specified events, the partners could terminate their participation in the project after giving the DOE Secretary at least 14 days’ advance notice and a chance to discuss the matter with the partners’ representatives.7 After 6 Pursuant to an equity funding agreement, each partner’s parent agreed to provide funds to its respective subsidiary as necessary for the partner to make the required equity contributions. 7 In general, partners were entitled to terminate participation in the project at any time prior to the in-service date if projected gross revenues from the project fell below (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011