Wyoming Administrative Code › Agency 085 - Business Council › Sub-Agency 0004 - Economic Planning And Partnership Challenge Loan Program › Chapter 6 - Large Project Loan Program › Section 6-7 - 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 Wyoming Business 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 Wyoming Business 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 to
				the Wyoming Business Council staff naming the State as a lien holder. At the
				discretion of the Wyoming Business 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. The Wyoming Business 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 the
				Wyoming Business 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. The Wyoming Business
				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 the Wyoming Business
				Council staff deems appropriate.