Piedmont Natural Gas gets restated $850 million revolver due 2020

By Angela McDaniels

Tacoma, Wash., Dec. 16 – Piedmont Natural Gas Co., Inc. entered into an amended and restated credit agreement on Monday that provides for an $850 million revolving credit facility due Dec. 14, 2020, according to an 8-K filing with the Securities and Exchange Commission.

Up to $10 million of the facility is available for issuance of letters of credit and up to $20 million is available for swingline borrowings.

The revolver has a $200 million accordion feature.

The interest rate is Libor plus 90 basis points. The commitment fee is 8.5 bps.

Borrowings will be used for general working capital needs and other corporate purposes, including back-up for the company's commercial paper program.

Wells Fargo Bank, NA is administrative agent, swingline lender, letter-of-credit issuer and a lender. Bank of America, NA, Branch Banking and Trust Co., JPMorgan Chase Bank, NA, PNC Bank, NA, U.S. Bank NA and Royal Bank of Canada are lenders.

The credit agreement contains a covenant that the company will not permit its ratio of consolidated funded debt to total capitalization to exceed 0.7 to 1.0 at any time.

The credit agreement also gives express consent to the change of control resulting from the completion of the transactions contemplated under the plan of merger with Duke Energy Corp.

Piedmont is a natural gas distributor. Duke Energy is a diversified energy company. Both are based in Charlotte, N.C.

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