Ferriter Scobbo aids its clients with lines of credit

Due to recent changes with Bank of America’s procedures, one of our clients needed to renew two lines of credit and turned to Ferriter Scobbo attorneys for assistance.

The first, originally obtained in 1998, was a $25 million dollar revolving line of credit utilizing interest rates based on LIBOR. The documents for this line of credit needed to be updated, amended and restated. Ferriter Scobbo attorneys did a comprehensive review and negotiated with Bank of America to ensure that the updated Loan Agreement, including provisions for Letters of Credit, Note and Security Agreement  aligned with the original intent of the loan. The client successfully closed on this $25 million line of credit, which permits proceeds to be used in financing amounts payable to counterparties for the purchase of power and energy and financial assurance as well as accounts receivable for the sale of purchased power and their associated costs.

The second line of credit was a $15 million revolving line of credit utilizing interest rates based on LIBOR. Ferriter Scobbo represented the client in the renewal, amendment and restatement of the Loan Agreement,, the Note and Security Agreement with Bank of America. The client will continue to use this line of credit to purchase, as well as to hedge the price of, fuel oil for generating units owned by the client and the sale of such fuel oil to the client’s projects.

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