Dayton Power amends revolving, bond purchase and covenant agreements

By Tali Rackner

Norfolk, Va., Feb. 27 – Dayton Power & Light Co. amended its revolving credit agreement with administrative agent PNC Bank, NA and its bond purchase and covenant agreement with agent SunTrust Bank on Feb. 21, according to an 8-K filing with the Securities and Exchange Commission.

The amendments each modified the definition of consolidated net worth in the relevant agreement (which is used for measuring the total debt to total capitalization ratio under the relevant agreement) to exclude, through March 31, 2018, non-cash charges related directly to impairments of coal generation assets in Dayton Power’s fiscal quarters ending Dec. 31, 2016 and thereafter.

The amendments also changed the dates after the planned separation of the company’s generation business from its distribution and transmission business during which compliance with the total capitalization ratio shall be suspended if long-term debt of Dayton Power, as determined by the Public Utilities Commission of Ohio, is less than or equal to $750 million.

As of the amendment effective date, the time period for each agreement is now the 12 months immediately subsequent to the separation of the generation assets from Dayton Power. It was previously Jan. 1 to Dec. 31, 2017, the filing said.

Dayton Power is a Dayton, Ohio-based power company and a wholly owned subsidiary of DPL Inc.

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