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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...)
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Last modified: May 25, 2011