Topic:"Financing Alternatives" in M12914

6 2.4 Debt Financing Costs 7 8 Debt financing costs consist of two components: (i) annual net interest costs and (ii) 9 amortization of deferred financing charges. These debt financing arrangements were 10 reviewed by the NSEB and confirme...

AI summary Debt financing costs include annual net interest costs and amortization of deferred financing charges. These arrangements were reviewed by the NSEB and confirmed as prudent in the Final Costs Decision.

Date Filed: June 25, 2026 Page 18 of 28 1 associated cost recovery rights. Of note is that, at this time, none of the lenders were 2 willing to extend more than the $35 million set out above. Absent unexpected funding 3 requirements, this...

AI summary The document discusses NSPML's financing situation, noting that lenders are only willing to provide up to $35 million in short-term financing due to security concerns. This amount is not long-term financing and will be subordinate to Canada's $1.8 billion in bonds. The document also mentions the amortization of deferred financing charges, with $1.5 million and $1.4 million included in the revenue requirement for 2027 and 2028, respectively.

1 3.0 FEDERAL LOAN GUARANTEE 2 2 3 In 2024, NSPML completed a $500 million federally guaranteed bond offering. As approved by the Board in the Decision of the Supplemental Application,20 4 NSPML 5 excludes the $500 million loan for purpose...

AI summary NSPML completed a $500 million federally guaranteed bond offering in 2024, and has requested recovery for FLG2 annual financing costs in 2027 and 2028. The costs include coupon interest, principal repayment, and guarantee fees, with semi-annual payments starting in 2025. The principal amount is reduced over time through semi-annual repayments.

Re: An overview of consideration for financing for NSP Maritime Link Inc. ("NSPML") To whom it may concern, As requested, we are providing an overview for consideration and indicative spread estimate for short-term financing for NSP Mariti...

AI summary The document provides an overview of financing considerations for NSPML, an unrated public utility. It outlines the indicative spread for short-term financing, noting that due to subordination and a highly leveraged capital structure, the spread is higher than for unsubordinated financing. This reflects the risk profile for subordinated lenders.

NON-CONFIDENTIAL Existing debt New Debt Blended Annual Rate Cust Cost of New Debt NSPML $1 billion @ 3.1% $10 million @ 6% 3.129%1 $600,000 NS Power $4 billion @ 5.0% $10 million @ 4% 4.998% $400,000 1

AI summary The table compares existing and new debt for NSPML and NS Power, showing blended annual rates and customer costs. NSPML has a lower existing debt rate but higher new debt rate, while NS Power has a higher existing debt rate but lower new debt rate.

10 Request IR-9: - 11 Reference: Section 2.4.1 Annual Net Interest Costs - 12 NSPML states: - 13 As previously conveyed, the original FLG relating to the Maritime Link (along with FLG2) 14 presently limit additional borrowings by the Compa...

AI summary NSPML explains that the current FLG agreements limit borrowing to $10 million, and asks how it will finance sustaining capital if this limit cannot be changed and whether higher requirements were anticipated when the agreements were made.

7 Request IR-14: - 8 Reference: Section 2.4.1, Annual Net Interest Costs (pp. 16-17). - 9 Preamble: The Application states that NSPML has committed to a term unsecured 10 revolving credit facility for up to $25 million, in addition to an u...

AI summary The document requests explanations regarding NSPML's credit facility, including the significance of a committed facility and uncommitted accordion, potential waivers to FLGs, steps to expand borrowing capabilities, and expected credit facility usage and interest rates in 2027 and 2028.