Mountaineer Gas increases revolver to $150 million

By Wendy Van Sickle

Columbus, Ohio, Oct. 26 – Mountaineer Gas Co., a wholly owned subsidiary of UGI Corp., entered into a third amendment on Oct. 20 to its credit agreement dated Nov. 26, 2019 with Truist Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides for an increase in revolver commitments by $50 million, to $150 million. The revolver includes a $20 million sublimit for letters of credit. There is a $100 million accordion.

Borrowings bear interest at term SOFR plus a credit spread adjustment of 10 basis points plus an applicable margin ranging from 100 bps to 225 bps, depending on Mountaineer’s credit rating.

The agreement matures on Nov. 26, 2024 with two one-year extension options.

Proceeds may be used for working capital and general corporate purposes.

Mountaineer must maintain a ratio of total debt to total capitalization of not more than 0.65 to 1.00 for the most recently completed period of four consecutive fiscal quarters and a ratio of consolidated EBITDA to consolidated interest expense of not less than 2.00 to 1.00 for the most recently completed period of four consecutive fiscal quarters.

Also on Oct. 21, UGI Energy Services, LLC amended its receivables purchase agreement dated Nov. 30, 2001 to set the scheduled termination date at Oct. 20, 2023.

UGI is a King of Prussia, Pa.-based distributor and marketer of energy products and services. Mountaineer is based in Charleston, W.Va.

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