UNT System has authorization to issue notes in the form of uncollateralized commercial paper for short-term or interim finance. Authorization is for up to $150 million outstanding at one time. However, a board restriction is in place for up to $125 million. CP is issued either as tax-exempt or taxable in $1,000 increments.
The system has two types of CP program offerings; Series A - Self-liquid CP and Series B - Extendible CP (ECP) with authorization up to $75 million (board restricted in place up to $50 million) and up to $75 million respectively. The self-liquid CP program is supported by readily available operating cash and highly liquid investments of the Short Term Pool and credit rating of UNTS. UNTS strives to maintain 2 times (2x) or more coverage for any outstanding self-liquid CP. ECP reduces the need for liquidity by providing the option at maturity with no subsequent investor placement for the existing holder to retain for the next extension/s of maturity/ies with the prevailing rate plus premium.
Further information and supporting documents for the CP programs are as follows:
- Self-Liquid CP Offering Memorandum (pdf)
- Extendable CP Offering Memorandum (pdf)
- Investment Reports (pdfs)
- Quarterly Self-Liquidity Reports (pdfs)
Dealer for Self-Liquid CP
Barclay's Municipal Short Term Trading
745 7th Avenue
New York, NY 10019
Morgan Stanley Municipal Short Term Trading
1585 Broadway, 2nd Floor
New York, NY 10036
Paying Agent for both programs