Avangrid and seven units enter into $1.5 billion five-year revolver

By Marisa Wong

Morgantown, W.Va., April 6 – Avangrid, Inc., New York State Electric & Gas Corp., Rochester Gas and Electric Corp., Central Maine Power Co., United Illuminating Co., Connecticut Natural Gas Corp., Southern Connecticut Gas Co. and Berkshire Gas Co. entered into a $1.5 billion revolving credit facility with a syndicate of banks on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Under the terms of the credit facility, each joint borrower has a maximum borrowing sublimit that can be periodically adjusted to address specific short-term capital funding needs, subject to the maximum limit set by the banks. Avangrid’s maximum sublimit is $1 billion; New York State Electric & Gas, Rochester Gas and Electric, Central Maine Power and United Illuminating each have a maximum sublimit of $250 million; Connecticut Natural Gas and Southern Connecticut Gas each have a maximum sublimit of $150 million; and Berkshire Gas has a maximum sublimit of $25 million.

The credit facility matures on April 5, 2021.

Pricing is based on ratings. The applicable margin for Libor loans ranges from 80 basis points to 165 bps.

Each of the borrowers will also pay an annual facility fee ranging from 12.5 bps to 17.5 bps, depending on ratings.

In addition, the facility contains negative covenants, including one that sets the ratio of maximum allowed consolidated debt to consolidated total capitalization at 0.65 to 1.00 for each borrower.

JPMorgan Chase Bank, NA, Merrill Lynch, Pierce, Fenner & Smith Inc., MUFG and Santader Bank, NA are the joint lead arrangers and joint bookrunners. JPMorgan Chase Bank is the administrative agent, and Bank of America, NA is the syndication agent.

Avangrid, formerly Iberdrola USA, is a utility based in New Haven, Conn. Its eight electric and natural gas utilities service customers in New York and New England.

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