Evergy gets $2.5 billion revolver with sustainability metrics

By Wendy Van Sickle

Columbus, Ohio, Aug. 31 – Evergy, Inc., Evergy Missouri West, Inc., Evergy Metro and Evergy Kansas Central entered Tuesday into an amended and restated credit agreement with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a $2.5 billion five-year revolver with a $150 million sublimit for letters of credit and swingline loans.

There is a $750 million accordion feature.

The credit facility amends and restates Evergy’s credit agreement dated Sept. 18, 2018.

The revolver matures on Aug. 31, 2026 and has two one-year extension options.

Interest on borrowings will be based on Libor plus a ratings-based margin ranging from 75 basis points to 175 bps. The commitment fee ranges from 5 bps to 27.5 bps, also depending on ratings.

The applicable interest rates and commitment fees are subject to upward or downward adjustments if Evergy achieves, or fails to achieve, some targets based on two key performance indicator metrics: non-emitting generation capacity and diverse supplier spend.

Each borrower must comply with a maximum ratio of total capitalization of 0.65 to 1.00.

Wells Fargo Securities, LLC, Citigroup Global Markets Inc., BofA Securities, Inc., MUFG Bank. Ltd., TD Securities (USA) LLC and U.S. Bank NA are the joint lead arrangers and bookrunners.

Bank of America, NA, Citibank, NA, MUFG, TD Bank, NA and U.S. Bank are the co-syndication agents.

Wells Fargo is the sustainability structuring agent.

Evergy is an electric utility based in Kansas City, Mo.

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