OFRC1AL FtLE r ORIGINAL. HU~~N s coMM£.H\ ... _ \UJHOJS COMMERCE C011111ti1illUl!>TATE oF ILLINOIS \LU~g~J\\SS\OH ILLINOIS COMMERCE COMMISSION \{): \.\ S lM\\ J\l\. I S A IN THE MA TIER OF ) _ "R\''S0ff\CE. ) CHIH CLL \ CONSUMERS GAS COMPANY ) ) Docket No. \4 -04l£ l_p Informational Statement Pursuant to ) §6-102 of the Public Utilities Act seeking ) authority to incur indebtedness in the ) amount of $1,500,000 to be repaid over a ) period of time in excess of twelve months, ) to give security therefore, to pay the ) proceeds of such funds received for such ) indebtedness and determining the fee to ) be paid pursuant to §6-108 of the ) Public Utilities Act )
INFORMATIONAL STATEMENT
To the Illinois Commerce Commission:
I. Consumers Gas Company (hereinafter "Consumers") is a corporation duly
organized and existing under the laws of the State of Illinois and engaged in the distribution and
sale of natural gas to the public in the State of Illinois.
2. Consumers is a public utility within the meaning of an act entitled, "The Public
Utilities Act" (220 ILCS 5/1-101, et seq.) (the "Act"), now in force in Illinois and is subject to
the jurisdiction of this Commission.
3. Pursuant to Section 6-102 of the Act (220 ILCS 5/6-102), Consumers is seeking
authority to incur indebtedness in the amount of $1,500,000 to be repaid over a period of time in
excess of 12 months, to give security therefore, to use the proceeds of such funds received for
such indebtedness; to obtain a determination of the fee to be paid pursuant to Section 6-108 of
the Act, if any; and requesting that the Commission provide proper identification numbers on the
proposed indebtedness pursuant to Section 6-10 I of the Act.
40NS089 4. On January 3, 2005, Consumers filed a verified Petition, assigned Docket No. 05-
0002, seeking authority to incur indebtedness at the Old National Bank, Evansville, Indiana (Old
National Bank) in the amount of$1,500,000.00 with a maturity date of October 4, 2007. This
Commission approved Consumers Petition in said docket by its Order dated June 2, 2005.
5. Prior to October 4, 2007, Consumers applied to Old National Bank for renewal of
the $1,500,000.00 indebtedness approved in Docket No. 05-0002. Old National Bank approved
the application in the principal amount of $1,500,000.00 with a fixed rate of interest of six and
75/IOO'h percent (6.750%) per annum on the unpaid outstanding principal balance on each
advance, interest to be paid monthly, with the principal amount to be repaid on demand or fully
repaid on October 4, 2010. Consumers entered that financing and used $1,491,037.70 to satisfy
the outstanding balance of the debt approved in Docket No. 05-0002.
6. Consumers, on October 12, 2007, filed its Petition for authority to incur the indebtedness described in the immediately preceding paragraph; the Petition was assigned
Docket No. 07-0509. Consumers filed a Motion to Dismiss Docket No. 07-0509.
7. Consumers subsequently submitted a separate loan request to the Old National
Bank. On May 28, 2008, Consumers filed a Verified Informational Statement in docket 08-0348 pursuant to Section 6-102 of the Act seeking authority to incur long term debt in the amount of
$1,500,000 to be repaid over a period in excess of 12 months, to give security therefore, to pay proceeds of such funds received from such indebtedness and determining the fee to be paid pursuant to Section 6-108 of the Act.
8. On July 16, 2008, the Commission entered an Order in Docket No. 08-0348 authorizing the borrowing by Consumers Gas Company of $1,500,000 from Old National Bank,
Evansville, Indiana. The loan closed on or about August 1, 2008, with a maturity date of three
{S067!999.3 2/3/2010 GAB TMS} 2 years and interest on the loan of 6.25% per annum. The outstanding balance of the debt
approved in 08-0348 is $1,500,000.
9. On March 10, 2010, the Commission entered an Order in Docket No. 10-0098
authorizing the borrowing by Consumers Gas Company of$1,500,000 from Integra, N.A. Bank,
Evansville, Indiana. The loan closed on or about March 31, 20 I 0, with a maturity date of three
years and interest on the loan of 6.25% per annum. The outstanding balance of the debt
approved in I 0-0098 is $1,500,000.
10. On August 2, 2011, the Commission entered an Order in Docket No. 11-0520
authorizing the borrowing by Consumers Gas Company of $1,500,000 from the First National
Bank, Evansville, Indiana, the loan was closed on or about August 18, 2011, with a maturity date
of three (3) years and interest on the loan of6.25%. The outstanding balance of the debt approved in 11-0520 is $1,500,000.
11. Consumers has submitted a loan request to First Bank ("Bank" or "First Bank")
7500 Eagle Crest Blvd., Evansville, Indiana 47715, which has been approved by First Bank subject to the terms and conditions contained within a letter dated July 14, 2014 from
Christopher M. Pfister, Senior Vice President of First Bank, 7500 Eagle Crest Blvd., Evansville,
Indiana 47715 to Mr. Glenn Robinson of Consumers Gas Company, a full and correct copy of which is attached hereto and incorporated herein as Exhibit A. The loan shall close on or before
August 16, 2014 subject to prior approval of the Commission.
12. The primary terms of Exhibit A are:
(I) Amount of Loan: $1,500,000 term note to refinance existing debt.
(2) Closing Date: A date to be mutually agreed upon after satisfaction of all conditions precedent and prior to August 16, 2014.
(3) Maturity Date: Three (3) years from funding date.
40N5089 3 (4) Use of Proceeds: Refinance existing term debt at Integra Bank.
(5) Terms of Repayment: Monthly payments of all accrued interest. The outstanding balance of principal, accrued interest, and all other sums due hereunder shall be due and payable on the Maturity Date.
(6) Interest Rate: 6.25% per annum
(7) Collateral: First security interest on all ofBorrower(s): (a) accounts receivable, accounts, general intangibles, chattel paper, instrument, documents and other forms of obligations and receivables, including proceeds thereof, now existing or hereafter acquired, (b) inventory, merchandise, raw materials, work-in-process and supplies, including proceeds thereof, now existing or hereafter acquired, ( c) equipment, goods, machinery, furnishings and other personal property, including proceeds thereof, now existing or hereafter acquired.
In addition to the above collateral, note shall also be secured by 1st REM's on the company's real estate located at 328 Industrial Avenue in Carmi, Illinois, commercial real estate located in Ridgeway, Illinois and commercial real estate located in Albion, Illinois.
(8) Insurance: Borrower(s) will be responsible for providing to Integra evidence of property hazard and general liability insurance acceptable to Integra with Integra named as an additional insured and loss payee.
(9) Loan Documents: This proposed facility shall be evidenced by a loan agreement, promissory note, security agreement, mortgage( s) financing statements, guaranty agreements, subordination agreements, and such other agreements, instruments and documents as Bank and its counsel may require in their sole and absolute discretion (collectively, the "Loan Documents").
(I 0) Deposit Accounts: Borrower shall open and maintain its primary deposit accounts and treasury management relationship with Integra Bank, NA
40N5089 4 13. Proceeds of the loan which is the subject of this Informational Statement will be
used, to the extent necessary, to pay the outstanding principal amount on the $I ,500,000 loan
with First National Bank which was authorized by this Commission in docket 11-0520. The
balance, if any, will be used to support inventory purchases.
14. Consumers, pursuant to Section 6-108 of the Act, seeks a determination of the fee,
if any, to be paid resulting from the described, proposed loan.
15. It is Consumers position that the financing described in the Information Statement
is fair and reasonable, and in the best interests of its customers and should be approved by the
Commission. Consumers understands and agrees to comply with the Public Utilities Act, 220
ILCS 5/101, et seq.
WHEREFORE, Consumers Gas Company respectfully prays that an Order be entered by the Commission (a) authorizing Consumers to enter into the long term financing upon the terms described on Exhibit A attached hereto and (b) authorizing Consumers to execute a security agreement, promissory note, and such other and further documents as may be required by the bank or the bank's counsel to permit the closing of the loan described in Exhibit A attached hereto, and (c) approving and authorizing Consumers Gas Company's performance of such other further actions or transactions in accordance with the Public Utilities Act and the rules and regulations of the Commission necessary and appropriate to carry out the aforementioned transaction, and (d) authorizing Consumers' use of the loan proceeds to retire the existing indebtedness due Integra N.A. Bank and for future necessary financial requirements of
Consumers Gas Company, (e) directing Consumers Gas Company, upon its execution ofa promissory note described herein to cause the following to be placed on the face of said note
Illinois Commerce Commission Identification No.
40N5089 5 ( f) and determine the fee, if any, to be paid by Consumers Gas Company to this Commission
resulting from the approval of the loan hereinbefore described.
Respectfully submitted,
CONSUMERS GAS COMPANY,
By~~O~ Its Attorneys
Sorting Northrup Gary A. Brown and Brian D. Jones, of Counsel # 1 Old State Capital Plaza, Suite 200 P.O. Box 5131 Springfield, IL 62705 Telephone: 217.544.1144 Fax: 217.522.3173 [email protected] [email protected]
40N5089 6 VERIFICATION
State oftHiiroi!= Indiana
County of Vanderburgh
Glenn Robinson, being first duly sworn, upon oath states that he is President of Conswners Gas Company; that he has read the foregoing Informational Statem t; and that the statements therein are true, correct, and complete to the best of his kn d belief.
"' -- .. enn Robinson, President :! ;_.:I ,-;-. onswners Gas Company ' ..
Subscribed and sworn to before me this (i.,-11! day of----"-J"-'.U.=L-"'-4_.__ ___,, 2014.:
40N5089 7