SUBJECT
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Adopt Resolution 2026-02 to Approve the Extension and Amendment of the PRWC Revolving Credit Agreement with Truist Bank and its Affiliate, Truist Commercial Equity, Inc. (Action)
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DESCRIPTION
On March 18, 2025, the PRWC Board of Directors approved Resolution 2025-04 authorizing a loan agreement with Truist Bank to provide a line of credit (LOC) in a principal amount not to exceed $10,000,000 for cash flow purposes. The current LOC matures on March 24, 2026.
With the Truist LOC expiring, the PRWC Financial Advisor worked with Truist on renewal terms. Truist agreed to extend the LOC for another year at the same favorable fees and terms as offered under the original LOC. One of the terms extended is the use of the SIFMA (Securities Industry and Financial Markets Association), a tax-exempt index which resets weekly, plus 20 basis points. For example, as of February 25th, the current interest rate is 2.08% based on the most recent SIFMA index of 1.88%.
The current Truist LOC has an outstanding principal balance of $1,217,521.95. Interest is paid monthly on the outstanding LOC balance in addition to payment of quarterly interest on the unused balance.
RECOMMENDATION
Adopt Resolution 2026-02 to Approve the Revolving Line of Credit Loan Agreement with Truist Bank.
FISCAL IMPACT
Since the Truist LOC original issuance, $46,549 in interest has been paid. The future fiscal impacts of the 2026 loan agreement extension are unable to be determined at this time due to the timing and amounts of future draws on the LOC and change in interest rate.
CONTACT INFORMATION
Laura Guy-Rice
Eric DeHaven