Portland General extends $650 million restated credit facility

By Mary-Katherine Stinson

Lexington, Ky., Sept. 14 – Portland General Electric Co. (PGE) amended and restated its $650 million credit agreement on Sept. 9 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The restated credit facility extends the scheduled termination date of the existing credit facility to Sept. 9, 2027 and changes the reference rate for loans to SOFR from Libor with an added credit spread adjustment of 10 basis points for each interest period.

The pricing schedule, based on investment-grade ratings, has the margin on SOFR loans starting at 87.5 bps and going up to 150 bps at the fifth level.

The commitment fee will be between 7.5 bps and 22.5 bps.

The amended credit facility again retains the accordion feature, which allows the company to increase its maximum borrowing limit by $100 million.

The credit facility also provides for the issuance of letters of credit subject to an aggregate sublimit of $150 million and swingline loans subject to an aggregate sublimit of $40 million.

In addition, the credit facility offers the potential for adjustments to interest rate margins and fees based on PGE’s achievement of some annual sustainability-linked metrics related to its non-emitting generation capacity and the percentage of management comprised of women and employees who identify as black, indigenous and people of color.

The facility contains customary covenants, including a covenant that prohibits the company from permitting the aggregate outstanding principal amount of all consolidated indebtedness to exceed 65% of its total capitalization as of the end of any fiscal quarter.

Advances under the amended facility may be used for general corporate purposes, including to provide liquidity, support commercial paper, refinance existing debt, and support collateral requirements under PGE's energy purchase and sale agreements.

The original agreement lists Wells Fargo Securities, LLC, BofA Securities, Inc., Barclays, JPMorgan Chase Bank, NA and U.S. Bank NA as bookrunners.

The co-syndication agents from the 2021 credit agreement were Bank of America, NA, Barclays, JPMorgan Chase Bank, NA and U.S. Bank NA.

Wells Fargo Securities, LLC is the sustainability structuring agent.

The public utility is based in Portland, Ore.

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