National Fuel gets $750 million revolver at Libor plus 80-152.5 bps

By Susanna Moon

Chicago, Oct. 31 – National Fuel Gas Co. obtained an amended $750 million unsecured committed revolving credit facility due Oct. 25, 2023, according to a 424B5 filing with the Securities and Exchange Commission.

Interest on the loans is Libor plus a margin ranging from 80 basis points to 152.5 bps, based on the company’s credit ratings.

The company entered into the amended credit agreement on Oct. 25 with JPMorgan Chase Bank, NA as the co-bookrunner and co-lead arranger, HSBC Bank USA, NA, Bank of America Merrill Lynch and Wells Fargo Securities, LLC as co-bookrunners and co-lead arrangers and JPMorgan Chase as administrative agent.

Proceeds may be used to pay the company’s obligations under its commercial paper program, other short-term credit facilities and maturing long-term debt obligations, as well as for general corporate purposes, including for working capital, capital expenditures and other corporate purposes.

For borrowings under the facility, the company may elect a maturity date that is 364 days after the date of the borrowing.

The credit agreement includes an option for the company to upsize commitments to up to $1 billion.

The facility fee is originally 15 bps and ranges from 7.5 bps to 22.5 bps.

The credit agreement includes a covenant that the company will not permit its debt to capitalization ratio to exceed 0.65 at the last day of any fiscal quarter. For purposes of calculating the debt to capitalization ratio, the company’s capitalization means the sum of its stockholders’ equity, its debt and 50% of the total after-tax amount of non-cash charges directly arising from any ceiling test impairment occurring on or after July 1, provided that the amount determined may not exceed $250 million.

The agreement contains a cross-default provision where failure by the company or any of its significant subsidiaries to make payments under other borrowing arrangements totaling $40 million or more, or the occurrence of some events affecting those other borrowing arrangements, could trigger an obligation to repay any amounts outstanding under the facility.

Bank of America, NA, HSBC Bank USA, NA and Wells Fargo Bank, NA are the syndication agents. Canadian Imperial Bank of Commerce, New York Branch, Citizens Bank, NA, KeyBank NA and U.S. Bank NA are the co-documentation agents.

National Fuel Gas is a Williamsville, N.Y.-based energy company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.