ML19329B993

Advises That Util Has Accepted Swiss Bank Corp for Line of Credit Arrangement Re Retrospective Premium Guarantee

ML19329B993
Person / Time
Site:	Davis Besse
Issue date:	07/28/1977
From:	Roe L TOLEDO EDISON CO.
To:	Saltzman J Office of Nuclear Reactor Regulation
References
331, NUDOCS 8002110778
Download: ML19329B993 (4)

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a o Docket No. 50-346 TOLECO %s EDISON July 28, 1977 -n D h[C.I l \\\\.k. u n c Serial No. 331 ~' United States Nuclear Regulatory Commission ~ Atta: Mr. Jerome Saltzman, Chief 7, ['" k I277 - Antitrust & Indemnity Group '+ ;pjg g'. g ; Nuclear Reactor Regulation zw :4 - ~ Washington, D. C. 20555 3 RE: Davis-Besse #1 ' ~ ', Retrospective Premium Guarantee Gentlemen: Please refer to our letter of June 30, 1977, whereby we advised that we were electing to provide our portion of the retrospective premium guarantee by utilizing a line of credit drrangement. Attached is a copy of a letter from the Swiss Bank Corporation outlining their proposal for a line of credit arrangement in the amount of $5,000,000, effective August 1, 1977. Based on our ownership share of Davis-Besse #1 (48.62%), the amount of our retrospective premium guarantee would be $4,862,000. This is to advise you that we are accepting the Swiss Bank Corporation's proposal. As mentioned in their proposal, they will furnish a separate letter specifying that the line of credit will only be made available in the case of an assessment by the Nuclear Regulatory Commission if a letter is requested. Please advise us if the letter is necessary, or if this letter stating our co=mitment is sufficient. 7 9,-me 7 -,, 7.. s. p Lowell E. Roe ' ~ ~ Robert F. Ertle Vice President, Facilities Development Assistant Treasurer attachment copy: Cleveland Electric Illuminating Company THE TCLECO EC:SCN COMPANY ECISCN DLAZA 3C0 MACISCN AVEN E TCLECO, CMIO 43552

:.:~..:= SWISS BANK CORPORATION

...i............. NEW YORK BR ANCH s 15 N ASS A U ST R EET. N EW Yo R K, N. Y.10005 3574

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National I AMS/mw New York. July 15, 1977 Came: Seescana. New vers sp. ease avaie.a your reosy) Toledo Edison Company 300 Madison Avenue Toledo, Ohio 43604 Att: Mr. Donald G. Nicholson Vice President, Finance Gentlemen: Following up on our visit to your offices in Toledo last month, and confirming our more recent telephone conversa-tions, we are pleased to offer you the following stand-by credit facility: -BORRCWER: Toledo Edison Company Toledo, Chic -A'!OUNT : S5,000,000.-- -UTILIZATIO:i: Straight cash advances against premissory notes. -RESTRICTICN: In keeping with new regulations set forth by the Nuclear Regulatcry Ccrmis-sien (MRC), we hereby agree to allow actual usage of this stand-by credit line only in the event that a claim is asser:cd against Toledo Edison as a result cf your liability arising cut of any extraordinary mishap connected with your nuclear reactor. We would require official written notice of such an occurrance and specific authorination from the NRC to make this 55,000,000 facility available to you. (If requested, we will furnish a separate letter speci-fically stipulating that this line of credit will cnly be made available to Toledo Edison in the case of a nuclear liability assessment by the Nuclear Regulatory Cc= mission.) .t. c /) 2.n.m

m. .s - a SWISS BANK CORPORATION NEW YORE BRA.NCH -VALIDITY: Two years; Conmiencing August 1,1977 and expiring July 31, 1979. Renewable if mutually agreeable. -RATE OF~ INTEREST: -COMPENSATING BALA?!CES: -CCIGI'" MENT FEE : -DOCC'.E:"rATICH : This aspect would be kept fairly simple and straightforward, with no formal loan agreement necessary. We would require the execution of a Ccrporate Borrowing Resolution and a Signature Card. We are delighted that this initial personal contact is de-veloping to our mutual benefit and are locking forward to seeing you again. If you will let us kncv the nex time business brings you ro New York we would very much like to host a luncheer. fer you and your asscciates. In the mean-time, we look forward to your respense to the offer outlined in this letter. I Very truly yours, SWISS BASE CORPORATICd New York Branch '/ // I ~ l / Alberto Togni doel Stewart Executive Vice President 'irst Vice President ,}}