Great Plains Energy, Kansas City Power unit extends credit facilities

By Marisa Wong

Madison, Wis., Dec. 22 – Great Plains Energy Inc. and Kansas City Power & Light Co. subsidiary KCP&L Greater Missouri Operations Co. entered into extension agreements and waivers on Dec. 17 to their respective credit agreements dated Aug. 9, 2010, according to an 8-K filing with the Securities and Exchange Commission.

Each extension agreement and waiver extends the term of each credit agreement to Oct. 17, 2019 and waives, on a one-time basis, some timing requirements for requesting and confirming those extensions.

The credit agreements are with Wells Fargo Bank, NA as administrative agent; Bank of America, NA, JPMorgan Chase Bank, NA and MUFG Union Bank, NA as syndication agents; and Wells Fargo Bank, NA, Bank of America, NA, JPMorgan Chase Bank, NA, MUFG Union Bank, NA, Barclays Bank plc, BNP Paribas, Goldman Sachs Bank USA, KeyBank NA, SunTrust Bank, Royal Bank of Scotland plc, U.S. Bank NA, Bank of New York Mellon, UMB Bank, NA, Commerce Bank and National Cooperative Services Corp. as lenders.

The extended credit facilities are still subject to an additional one-year extension, provided revolving loans and standby letters of credit do not exceed an aggregate of $200 million, in the case of Great Plains, and $450 million, in the case of Greater Missouri, at any one time.

Each credit agreement provides for standby letters of credit and swingline loan sublimits of $50 million and $25 million, respectively.

So long as there is no default or unmatured default, Great Plains and Greater Missouri may transfer and re-transfer up to $200 million of unused lender commitments between the two credit agreements, so long as the aggregate lender commitments under the Great Plains and Greater Missouri facilities do not exceed $400 million and $650 million, respectively.

Great Plains and Kansas City Power & Light may also transfer and re-transfer up to $200 million of unused lender commitments between their two credit agreements (Kansas City Power & Light’s credit agreement described below), as long as the aggregate lender commitments under the Great Plains and Kansas City Power & Light facilities do not exceed $400 million and $800 million, respectively.

Interest for the Great Plains and Greater Missouri facilities is equal to Libor plus an amount based on the then-current credit ratings of Great Plains or Greater Missouri, as applicable.

All outstanding advances under the Great Plains facility are due and payable at the expiration of the facility. All outstanding advances under the Greater Missouri facility are due and payable at the earlier of the expiration of the facility or 364 days after the applicable borrowing date.

Among other things, Great Plains and Greater Missouri are each required to maintain a consolidated indebtedness to consolidated capitalization ratio not greater than 0.65 to 1.0 at all times under the respective credit agreement.

KCP&L credit agreement

Also on Dec. 17, Kansas City Power & Light entered into an extension agreement and waiver to its credit agreement dated Aug. 9, 2010.

The extension and waiver extends the term of the credit agreement to Oct 17, 2019 and waives, on a one-time basis, timing requirements for requesting and confirming the extension.

The revolving credit facility may still be extended by an additional year, provided revolving loans and standby letters of credit do not exceed an aggregate of $600 million at any one time.

The facility provides for standby letters of credit and swingline loan sublimits of $75 million and $25 million, respectively.

Interest is equal to Libor plus an amount based on the then-current credit ratings of Kansas City Power & Light.

All outstanding advances are due and payable at the earlier of the expiration of the facility or 364 days after the applicable borrowing date.

The credit agreement is with Wells Fargo Bank, NA as administrative agent; Bank of America, NA, JPMorgan Chase Bank, NA and MUFG Union Bank, NA as syndication agents; and Wells Fargo Bank, NA, Bank of America, NA, JPMorgan Chase Bank, NA, MUFG Union Bank, NA, Barclays Bank plc, BNP Paribas, Goldman Sachs Bank USA, KeyBank NA, SunTrust Bank, Royal Bank of Scotland plc, U.S. Bank NA, Bank of New York Mellon, UMB Bank, NA, Commerce Bank and National Cooperative Services Corp. as lenders.

Great Plains Energy is based in Kansas City, Mo. It is the holding company of Kansas City Power & Light and KCP&L Greater Missouri, two regulated providers of electricity.

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