Essential Utilities gets $500 million of term loans due April 2021

By Sarah Lizee

Olympia, Wash., April 3 – Essential Utilities, Inc. entered into a credit agreement on Friday with PNC Bank, NA as administrative agent, providing for $500 million in term loans due April 2, 2021, according to an 8-K filing with the Securities and Exchange Commission.

PNC Capital Markets LLC and CoBank, ACB are the joint lead arrangers and joint bookrunners. CoBank is the syndication agent.

Pricing is Libor plus 137.5 basis points.

The company intends to use the proceeds from the term loans for general corporate purposes and to strengthen its liquidity and cash position, and maximize its financial flexibility in light of the uncertainty surrounding the impact of the coronavirus pandemic.

Essential Utilities, formerly known as Aqua America, Inc., operates as a water utility company. It is based in Bryn Mawr, Pa.

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