Stratford Utility
Request for Quotations Construction Financing

The Stratford Utility Corporation requires financing for the construction of our Wastewater Delivery System to Charlottetown Pollution Control Plant. The project is currently under construction with an expected date of completion by October 31, 2020.

The Stratford Utility Corporation is seeking proposals for $12,500,000 Interim construction financing.

Construction Financing
This project is well under way and is expected to be completed by the end of October 2020. It is the Town of Stratford’s intention to replace the construction financing net of funding from other funding partners with term financing on or before December 31, 2020.

RATE: Floating
AMORTIZATION: N/A
MATURITY: On Demand – but no later than December 31, 2020
INTEREST: To be paid monthly by automatic withdrawal from bank account.
PRINCIPAL: Principal payments prior to maturity will coincide with receipt, if any, of
related funding from other orders of government.
DRAWDOWN: An initial drawdown will be made in the amount of $2,500,000 upon awarding and approval of the financing, after which the Town of Stratford will request one draw per month based on its capital costs. It is estimated that the monthly draws for the next nine months will average between $1.0 and $1.5 million.

Alternative 2:
Bidders may offer terms and methods of compounding that they deem to be appropriate for this type of project financing. If you are planning on using a bankers acceptance option please use the cash market or interest rates as of the morning of February 10, 2020.

The Stratford Utility Corporation wishes to advise all proposers that this is a competitive proposal, which will be awarded to the proposer with the lowest bid. In order to be considered the quotations must be received no later than 1:30 pm on February 10, 2020. These quotes should be open for 4 days.

Please submit your quotation either by email or by fax before the required deadline to:

Kim O’Connell, CPA
Director of Finance and Technology
The Town of Stratford
234 Shakespeare Drive
Stratford, PE C1B 2V8
1-902-569-6258
FAX: (902) 569-5000
Email: koconnell@townofstratford.ca

The Town of Stratford reserves the right to reject any or all proposals which are not deemed to be in the best interest of the Corporation.

Print Version: Construction Financing Pipe to Charlottetown Project.pdf