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Laclede subsidiary Alabama Gas gets $150 million five-year revolver
By Toni Weeks
San Luis Obispo, Calif., Sept. 4 – Laclede Group, Inc. announced that subsidiary Alabama Gas Co. entered into a new $150 million syndicated revolving credit agreement on Tuesday with Wells Fargo Bank as administrative agent in connection with Laclede’s acquisition of Alabama Gas from Energen Corp. on Sept. 2.
The facility may be increased by up to $50 million and contains $15 million sublimits for letters of credit and swingline loans, according to an 8-K filing with the Securities and Exchange Commission.
The new loan agreement matures Sept. 2, 2019, but the company may request up to two one-year extensions. It bears interest at Libor plus 87.5 basis points to 150 bps, depending on credit ratings. There is a commitment fee of 7.5 bps to 22.5 bps, also based on ratings.
The agreement limits Alabama Gas’ consolidated debt to 70% of its consolidated capitalization.
Initial borrowings were used to repay about $15 million of borrowings outstanding under Alabama Gas’ existing credit agreement with Bank of America, NA, which was then terminated. Alabama Gas intends to use future borrowings for working capital and general corporate purposes, including short-term borrowings and letters of credit.
Credit Suisse AG, Cayman Island Branch and U.S. Bank NA are the co-syndication agents on the new facility. Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC and U.S. Bank are the joint lead arrangers and joint bookrunners.
Laclede Group also announced that the company and subsidiary Laclede Gas Co. amended their syndicated revolving credit facility with Wells Fargo Bank, NA on Wednesday to extend the maturity date under the Laclede loan agreements for one year to Sept. 3, 2019.
Laclede is a utility holding company based in St. Louis.
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