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LArziclN. D-gLLY & LjiI D, 0 R E LIT D
<br />Thomas, D. Creighton,, E 1
<br />September 26, 198'6
<br />Pa, gi 3
<br />0,
<br />above the basic $50,000,000 credit provided by the First
<br />National Bank of Boston. pursuant to its Commitment Letter of
<br />June 91, 1986., Basied on current indusitry practice, the amount
<br />of this additional borrowing capacity 'is determined by
<br />multiplying annual cash flow by 5, to 6 times and sup btractiLng
<br />any i,sting senior credits outsitanding,,, Thi's additional
<br />mi
<br />borrowing cila,pacity is demons rated and confirmed by:
<br />,D,
<br />(a), A letter from Phillip, Hoiguer President, Investment
<br />Bankingr olf Daniels Assn ciatesp, Inc* (Attachment B)
<br />states:
<br />"North, Central's projections show considerable
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<br />additional, borrowing capacityr far in excess the
<br />pro3ec ed negative baliancies, This assessment of
<br />additional borrowing capacity 'i's based on North
<br />Central "s, projected cash flows, its projected debt
<br />and the normal w 'mill Ingniess, of financial
<br />institu i
<br />tions, to eIxt,end senior credits of S-6 times
<br />a cable, system's cash flow. Thusir should the
<br />0
<br />piroij�,ecteel negative cash blialancies actually
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<br />materialize, the projections show that North
<br />Central should have, available additional borrowing
<br />capacity far in exclesis, of is cash requirements."
<br />(b) A letter olf September 111,,, 1986, from the 'First National
<br />Bank f Boston ("Attachment C) states,
<br />a,
<br />"We believe t,heis fina
<br />ie ncial projections, upon which
<br />we,
<br />based our credit Jig udgment, are reasonable and
<br />that they demons it rate ,, 'in our professional
<br />Judgment, that the company "is adequately funded
<br />under all reasonably folres,leeable circumstances.1
<br />Beyond, that,, from time to, time North Central, will
<br />have additional borrowing capaci y available based
<br />upon the Piro,-foirma proj",ect ions ."
<br />(c) An, actual projection of the available 'aid itionial
<br />borrowing capacity is provided as Attachment Do North
<br />Central confirms that should it find adiditl'onal funding
<br />to be, neicessiary, it will endeavor to first utilize any
<br />avallable equity and additional borrowing capacity
<br />before initiating any di*scussions of franchise changes
<br />or changes with respect to the Institutil'onal Networks
<br />
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