STRONG SUPPLY CONTRACTS: MGAG
provides all-requirements gas supply to 77 municipal gas distribution system members pursuant to long-term gas supply contracts, including take-or-pay supplemental contracts, which obligate the members to pay all costs related to the gas portfolio III project on an unconditional basis.
and CMC will be major participants in the structure while Okaloosa Gas District (Florida), City of Pensacola (Florida), The Southeast Alabama Gas District (Alabama) and The Tennessee Energy Acquisition Corporation (Tennessee) will be the minor participants.
STRONG FINANCIAL METRICS: MGAG
exhibits financial metrics consistent with the current rating category including total debt/funds available for debt service of 1.
Change in Participating Member Ratings: The long-term rating on the PGP bonds will continue to reflect the credit of the underlying financing participants, specifically the two largest participants, MGAG
and SEAGD, whose default could not be restored by the required 25% step-up provision.
In addition, MGAG
is exposed to refinancing risk on its one-year notes.
Each member has entered into a gas supply contract with MGAG
, under which MGAG
is obligated to provide (and such member is obligated to purchase) all of its gas supply requirements from MGAG
While this debt profile currently provides MGAG
with low borrowing costs, the authority is exposed to greater remarketing risks when compared to other joint action agencies.
As part of this financing, MGAG
has entered into an arrangement with The Southeast Alabama Gas District (SEAGD) to share 50% of the production from the property interests, and a pro rata share of all operating expenses and capital requirements of the project.
The New York Court made its decision with the proviso that Schimmelbusch receive certain assurances from MGAG
and the others that he retains an option to seek jurisdiction in Germany, if he so chooses.
s finding that Arthur Benson's Employment Agreement should be terminated for cause because of reckless conduct causing material damage to MGR&M, MG and MGAG
The strategic business plan, which was discussed with the MGAG
Executive Board meeting in New York, outlines specific actions and initiatives to be taken in MG's two primary energy businesses, MG Refining and Marketing Inc.
The suit followed by one week the release of a special auditor's report on the oil trading losses sustained by MGAG
and its subsidiaries in late 1993.