Wyoming Administrative Code › Agency 085 - Business Council › Sub-Agency 0017 - Wyoming Partnership Challenge Loan Program › Chapter 9 - LARGE PROJECT LOAN PROGRAM › Section 9-7 - Risk Analysis

Current through July 13, 2024
(a) Interest rate.
				The interest rate for any loan under this program shall be consistent with Wall
				Street Journal Prime (WSJP) as of the date of the application with a floor of
				WSJP minus one percent (1%) and a ceiling of WSJP plus seven percent (7%). The
				interest rate shall be proposed by Council staff to the loan review committee
				for approval, and State Land and Investment Board for approval, after
				considering applicable risk factors and the economic impact of the
				project.
(b) Subordinate financing.
				The loan or loan guarantee documents shall require that the State maintain a
				first priority lien on all collateral, and no collateral securing the loan or
				loan guarantee may be used to obtain subordinate financing without the written
				consent of the Council.
(c)
				Insurance requirements. Insurance requirements shall vary based on the type of
				project which is the subject of the loan or loan guarantee but, at a minimum,
				general liability and property insurance shall be required in amounts and with
				terms that are acceptable Council staff naming the State as a lien holder. At
				the discretion of Council staff, other types of insurance may be required based
				on the type of project being financed and/or the property that serves as
				collateral for the loan or loan guarantee, such as business interruption,
				flood, earthquake, or other insurance class as applicable.
(d) Financial covenants. Council staff may
				require that the loan or loan guarantee documents include financial covenants
				with which the applicant must comply for the term of the loan or loan
				guarantee. Such covenants may include standards relating to debt service
				coverage, debt limitations, net worth, leverage, interest coverage or any other
				financial metrics determined by Council staff necessary to ensure the strength
				and performance of the applicant.
(e) Acceleration upon closure of Wyoming
				facility or applicant's relocation outside the State. The loan documents may
				provide that, if the applicant closes the facility or operation that is the
				subject of the loan or loan guarantee or relocate such facility or operation
				outside the State of Wyoming prior to maturity of the loan or the applicant's
				actions indicate that applicant intends to so close or relocate the facility or
				operation, the outstanding balance of the loan shall be immediately due and
				payable including all interest accrued to the date of such payment and any and
				all fees and expenses due and owing. If the State has guaranteed financing
				pursuant to this Chapter, the guarantee documents shall provide that the
				guarantee shall terminate immediately and irrevocably as of the decision to
				close, or relocate the facility or operation or the commencement of any actions
				indicating a future closure or relocation.
(f) Commencement of project. The loan
				documents shall require that the applicant commence construction of the project
				within one (1) year after closing of the loan or loan guarantee. If the
				applicant fails to commence construction within that time, the outstanding
				balance of the loan shall become immediately due and payable, including all
				interest accrued to the date of such payment and any and all fees and expenses
				due and owing. If the State has guaranteed financing pursuant to this Chapter,
				the guarantee documents shall provide that the guarantee shall terminate
				immediately and irrevocably after one (1) year if construction of the project
				has not commenced.
(g) Other
				covenants. Council staff may include terms in the documents for the loan or
				loan guarantee to protect the State's interest, such as:
(i) Escrow accounts;
(ii) Cash sweeps;
(iii) Pledge rights;
(iv) Corporate approval rights;
(v) Acceleration rights for facility closure,
				failure to meet job creation and tax base requirements and failure to continue
				to satisfy any requirements necessary to qualify for eligibility for the large
				project program; and
(vi) Other
				mechanisms Council staff deems appropriate.