Evergy, Westar, Kansas City Power & Light get $2.5 billion revolver

By Marisa Wong

Morgantown, W.Va., Sept. 18 – Evergy, Inc., Westar Energy, Inc., Kansas City Power & Light Co. and Evergy subsidiary KCP&L Greater Missouri Operations Co. entered into a master revolving credit facility on Sept. 18 with a syndicate of banks for maximum borrowings of up to $2.5 billion, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC, Citigroup Global Markets Inc., JPMorgan Chase Bank, NA, Bank of America Merrill Lynch and MUFG Bank, Ltd. are joint lead arrangers and joint bookrunners. Wells Fargo Bank, NA is administrative agent. Bank of America, NA, Citibank, NA, JPMorgan Chase Bank and MUFG Bank are co-syndication agents and, along with U.S. Bank NA, issuing lenders.

The facility includes a $150 million sublimit for the issuance of letters of credit and a $150 million sublimit for swingline loans.

The borrowers may elect to increase the credit facility by up to an aggregate principal amount of $750 million.

The facility matures on Sept. 18, 2023, subject to two one-year extension options.

Borrowings bear interest at Libor plus 75 basis points to 175 bps, depending on debt ratings.

The commitment fee ranges from 5 bps to 27.5 bps, also based on ratings.

The credit facility contains negative covenants, including one that sets the ratio of maximum allowed total indebtedness to total capitalization at 0.65 to 1.00 for each borrower.

In connection with the new credit facility, the following agreements were terminated effective Sept. 18: Evergy’s credit agreement dated Aug. 9, 2010, which provided for an up to $200 million revolver set to mature on Oct. 17, 2019; Kansas City Power’s credit agreement dated Aug. 9, 2010, which provided for a $600 million revolver due Oct. 17, 2019; KCP&L Greater Missouri’s credit agreement dated Aug. 9, 2010 for a $450 million revolver set to mature on Oct. 17, 2019; Westar’s credit agreement dated Feb. 18, 2011, which provided for a $270 million revolver due Feb. 18, 2019; and Westar’s fourth amended and restated credit agreement dated Sept. 29, 2011 for a $730 million revolver set to mature on Sept. 29, 2019.

Evergy and Kansas City Power are electric utilities based in Kansas City, Mo. Westar is based in Topeka, Kan.

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