Refinancing of existing secured debt—distribution and power supply borrowers.

CFR · 2024-01-01 · US · Title 7

(a) (1) The refinancing is a current refunding and does not involve interest rate swaps, forward delivery contracts, or similar features; (2) The principal amount of the refinancing loan does not exceed the sum of the outstanding principal amount of the debt being refinanced plus the amount of transactions costs included in the refinancing loan that are eligible for lien accommodation or subordination under § 1717.852(a)(4); (3) The weighted average life of the refinancing loan is not greater than the weighted average remaining life of the loan being refinanced; and (4) The present value of the cost of the refinancing loan, including all transaction costs and any required investments in the lender, is less than the present value of the cost of the loan being refinanced, as determined by a method acceptable to RUS. The discount rate used in the present value analysis shall be equal to either: (i) The current rate on Treasury securities having a maturity equal to the weighted average life of the refunding loan, plus one-eighth percent, or (ii) A rate approved by RUS based on documentation provided by the borrower as to its marginal long-term borrowing cost. (b) (c) (1) A certification by an authorized official of the borrower that the application meets the requirements of paragraph (a) of this section and all applicable provisions of §§ 1717.852 and 1717.853; (2) Documentation and analysis demonstrating that the application meets the qualification criteria set forth in paragrap

official document · source cfr-2024 · id 7:§ 1717.857