Central Plains Energy Project Announces Consent Solicitation For Its Gas Project Revenue Bonds, Series 2007A And Series 2007B
NEW YORK, March 19, 2013 /PRNewswire/ -- Central Plains Energy Project ("CPEP") announced today that it is soliciting consent to certain amendments to the transaction from holders of its Gas Project Revenue Bonds, (Project No. 1) Series 2007A and Series 2007B (together with the Series 2007A Bonds, the "Series 2007 Bonds") on the terms and subject to the conditions set forth in the Consent Solicitation Statement dated March 18, 2013.
As more fully described in the Consent Solicitation Statement, the proposed amendments would permit CPEP to:
- Provide credit support for MBIA, Inc., as an investment agreement provider for the Working Capital Account of the Project Fund ($10,095,000), the Current Reserve Subaccount of the Debt Service Reserve Account ($21,630,000), and the Early Termination Reserve Subaccount of the Debt Service Reserve Subaccount ($6,235,000), by amending the Gas Supply Contracts between CPEP and the Project Participants, amending and restating the Receivables Purchase Agreement and amending the Goldman Sachs Guaranty, and by making corresponding amendments to the Indenture.
- Amend and Restate the Gas Purchase Agreement between CPEP and J. Aron & Company, as gas supplier, to eliminate a seller default if The Goldman Sachs Group, Inc. fails to maintain a credit rating of "BBB-" or higher by Standard & Poor's or "Baa3" or higher by Moody's, or otherwise post credit support.
- Create a custodial arrangement with respect to the Commodity Swaps in order to mitigate CPEP's credit exposure to the Royal Bank of Scotland plc, as the commodity swap counterparty, and make corresponding amendments to the Commodity Swaps in connection therewith.
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