Spire, units enter five-year $975 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Dec. 16 – Spire Inc. and subsidiaries Laclede Gas Co. and Alabama Gas Corp. entered into a five-year $975 million revolving credit facility on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities LLC, U.S. Bank NA and J.P. Morgan Chase Bank NA acted as joint lead arrangers and joint bookrunners; Wells Fargo Bank, NA, as administrative agent; U.S. Bank and JPMorgan as co-syndication agents; and Bank of America, NA, Credit Suisse, AG, Cayman Islands Branch, Morgan Stanley Bank, NA, Regions Bank, Royal Bank of Canada and TD Bank, NA as co-documentation agents.

The credit agreement has sublimits of $300 million for Spire, $475 million for Laclede and $200 million for Alabama Gas. The sublimits may be reallocated between the borrowers from time to time.

There is a $300 million accordion feature, a $60 million sublimit for letters of credit and a $75 million sublimit for swingline loans.

The borrowers may request up to two one-year extensions.

Borrowings bear interest at Libor plus a margin ranging from 87.5 basis points to 150 bps, depending on the borrower’s credit rating. The commitment fee ranges from 7.5 bps to 22.5 bps.

The loan replaces Spire’s and Laclede’s and Alabama Gas’ existing loan agreements with Wells Fargo as administrative agent, which were entered on Sept. 3, 2014 in the case of Spire and Leclede and Sept. 2, 2014 in the case of Alabama Gas.

Spire, formerly Laclede Group Inc., is a utility holding company based in St. Louis.

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