|
a
<br />borrowi 11 ng c�apa,cli"' ty 'in terms of the 5 it 51 factor times oper-
<br />ating cash flow is reasonablell.1 However, the borrowing
<br />capacity of North Central will be h,l]"lighly dependent upon the
<br />levell. of operating clash flows being generated from t,hei,r
<br />cable systems a,t such time me North, Central would seek tio bor-
<br />Al l 0 Y of the cash flow projec-
<br />row a,ddi,ti,oina,l funds. The a,cicurlac
<br />ti'Lons, of North Central, cannot be deltermined without an
<br />lind,elpith a-nalysis of revenues and expenses as presented.
<br />Nevertheless, assuming the cash flow projectilons of North
<br />Central argil reasionableg, Mr., Cattolor can conclude that the
<br />bloirrowi,n,g capacity is, more than esufficient to meet the pro-
<br />jec�ted $ll.4 mi'llion shortfall., Add "it, I*olna,lly,, North Central
<br />has confirmed that, should it find, additional funding to be
<br />*'t, l"ll endeavor to firs,t utilize any available
<br />neces sar y, i wi I
<br />" tyl. oir cred 'it f aci 1 1 1
<br />equ, i 1*tyl b�efor�e 'ntiating any discussions
<br />w it,h the, Commission or its member Cities with regard to
<br />111 1
<br />a Ion 4
<br />franchisel or system modirications QI
<br />IV a OTHER, COMMITMENTS
<br />North Central has also documented other commitments and
<br />assur,an,cilels whilch, address the questions and concerns raised
<br />at the Commission public hearing. 1 Specif,ic all y, North
<br />Central has acknolwl,edged, that it undeirstands and accepts all
<br />of the provisions of the, franchise and affirms that it will
<br />comply, wi'th the same. Add itionallyl,,, North Cientral has
<br />agreed it will not initiate with the Commission or its mem-
<br />o, 41
<br />ber cities, discussions of changes, i n the community program
<br />requirements of the franchises prior to one year from June
<br />198,61, if' ever,., North Central has also clonfit d that its
<br />obli,gatiffions under the franc,Mse are, guaranteed 'by the per-
<br />foirmance bonds, and letters, of' credit, now in place'r whi'ch
<br />bonds and letters, olf credit are in turn guaranteed 50-50 by
<br />Continental Cablevi,s,31onf Inc., and Hauser Communfeat s
<br />Inc,. Fli nallyr North Central has provided evidence from
<br />Con,tinen,ta,l Cable Vislion,r Inc., that it will utilize its best,
<br />efforts to, borlrlolw an addit,Tonal $3 million for other busi-
<br />ness rep: reef
<br />s..
<br />111
<br />It should be understoold by the Commission that to date no
<br />detailed analysis of the, North Central pro formas �(revenues,
<br />expenses,, .capital ex en and other hems ) has been
<br />ple r f'o rl me, d. It can only be coincluded at this point that the
<br />amount of' funds ne ssia to, a,cquirle the sxstem appear to be
<br />in, place supported by, a loan, commitment from First Bank of
<br />Boston for $'' illion, and equity investments from Conti-
<br />n,ent,al for $13 million and Daniels & Associates for $7.6
<br />million.1
<br />� 4 —
<br />
|