Great Plains Energy amends credit agreement ahead of Westar merger

By Wendy Van Sickle

Columbus, Ohio, June 16 – Great Plains Energy Inc. entered into a third amendment on June 13 to its credit agreement dated Aug. 9, 2010 to modify some covenants in anticipation of the closing of the merger with Westar Energy, Inc., according to an 8-K filing with the Securities and Exchange Commission.

The amendment, among other things, makes the following changes to the credit agreement:

• Increases the maximum consolidated debt to consolidated capitalization ratio of 0.65 times to a level such that, if Great Plains Energy would not be in compliance with the covenant as of the date of the closing of the merger with Westar, the maximum ratio would increase to a level so that Great Plains Energy would be in compliance plus 0.05 times, but not more than 0.75 times, and

• Excludes from debt used to test compliance with the ratio – until the earlier of the acquisition closing date and the date that is 10 days following termination of the merger agreement debt –up to $7,517,000,000 issued or borrowed by Great Plains Energy solely for the purpose of financing the merger and which is redeemable or prepayable at not more than 101% of the principal amount thereof, plus accrued interest, if the merger is not consummated.

When the amendment became effective, the commitment for a $500 million unsecured term loan to be used for working capital purposes under the commitment letter with Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC, previously reported by Great Plains Energy in its 8-K filed on May 31, automatically terminated.

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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