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)
Paying Agent for both programs