Essential Utilities gets $400 million of revolving, term loans

By Sarah Lizee

Olympia, Wash., March 16 – Essential Utilities, Inc. entered into an incremental facility amendment agreement to its existing five-year unsecured revolver with PNC Bank, NA as administrative agent on Friday, providing for an additional $300 million of borrowing capacity, according to an 8-K filing with the Securities and Exchange Commission.

In addition to the incremental amount, the revolver provides for $550 million of tranche 1 commitments and up to $150 million of tranche 2 commitments.

Also, the company entered into another credit agreement with PNC on March 13 that provides for a $150 million term loan. This credit agreement will mature on March 12, 2021. It bears interest at Libor plus 87.5 basis points.

Proceeds will be used for general corporate purposes.

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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