MGE Energy, Madison Gas increase facilities, extend maturities

By Tali David

Minneapolis, June 28 - MGE Energy, Inc. and Madison Gas and Electric Co. each entered into on June 19 an amendment to their existing credit agreements with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

In the case of MGE Energy, the amendment increases the revolving credit facility to $50 million from $40 million and extends the expiration date to July 31, 2017 from July 31, 2015.

For Madison Gas, the amendment increases the revolving credit facility to $100 million from $75 million and extends the expiration date to July 31, 2017 from July 31, 2015. In addition, both amendments lowered the adders used in the determination of the interest rates under the existing credit agreements.

As a result of the amendments, the existing credit agreements for both of MGE Energy and Madison Gas carry interest at either (a) a floating rate plus aero to 12.5 basis points, depending on the credit ratings assigned to MGE's senior unsecured long-term debt securities or (b) Libor plus 67.5 bps to 112.5 bps depending on credit ratings.

Madison, Wis.-based MGE Energy is a public utility holding company. Madison Gas and Electric is a subsidiary of MGE Energy.

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