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Intercompany Loan with Pennichuck Corporation
PAC is seeking the City’s approval to:
(1) refinance a 10-year $776,850 7% fixed rate intercompany note payable between
PAC and Pennichuck Corporation which matures on May 1, 2018; and
(2) convert $409,150 of variable rate short term intercompany debt to a long term note.
These two existing notes would be aggregated into one new long-term intercompany note payable as a
new single intercompany loan. The new intercompany loan would be in the aggregate amount of
$1,186,000, repaid over a 30-year term, on a fully amortizing basis, at an interest rate of 3.2%.
Approval by Pennichuck and PAC Board of Directors. The new intercompany loan has been
approved by the respective Board of Directors of Pennichuck and PAC.
New Hampshire Public Utilities Commission PUC) Approval Required. As a regulated
public utility, PAC must obtain approval of the new intercompany loan from the NHPUC. PAC has
filed a petition to request this approval on March 8, 2018. Said approval is conditioned upon
receiving shareholder approval from the City of Nashua, in conjunction with this request.
Requested Approvals. For the reasons described above, Pennichuck respectfully requests that the
City, acting in its capacity as sole shareholder of Pennichuck and pursuant to Article IX (3) of
Pennichuck’s Articles of Incorporation, authorize the following actions:
RESOLVED, that the City hereby approves the refinancing of a 10-year $776,850
intercompany note payable between Pittsfield Aqueduct Company, Inc. and
Pennichuck Corporation, and the conversion of $409,150 of variable rate short term
intercompany debt to a long term note; the two notes to be aggregated into a single
long term intercompany loan in the aggregate amount of $1,186,000 to be repaid over
a 30-year term, on a fully amortizing basis, at an interest rate of 3.2%.
FURTHER RESOLVED, that the City authorizes Pennichuck Corporation and
Pittsfield Aqueduct Company, Inc., their Boards of Directors, and their Officers, to
take any and all actions required to obtain ail necessary approvals with respect to the
actions described in the prior resolution and to execute and deliver such documents as
are necessary to effect the long term intercompany loan described in the prior
resolution.
Respectfully submitted,
PENNICHUCK CORPORATION
By: LA _
D. Goodhue
Chief Executive Officer
cc: Mayor James Donchess
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