Northwestern Energy inks new $425 million credit agreement

By Rebecca Melvin

New York, Sept. 4 – Northwestern Corp.’s Northwestern Energy entered into a new $425 million credit agreement on Sept. 2, replacing its third amended and restated credit agreement dated Dec. 12, 2016, according to an 8-K filing with the U.S. Securities and Exchange Commission on Friday.

The facility increases the capacity of the company’s prior facility by $25 million and extends the maturity to Sept. 2, 2023, with uncommitted features that allows up to two one-year extensions and increase the size by an additional $75 million.

BOFA Securities, Inc., Credit Suisse Securities (USA) LLC, and U.S. Bank NA act as joint lead arrangers and co-syndication agents under the new facility. Keybank NA acts as documentation agent; and Bank of America, NA acts as administrative agent.

The facility does not amortize and is unsecured.

Borrowings accrue interest at the Eurodollar rate plus 112.5 basis points to 175 bps. Interest, commitment fees and letter of credit fees are based on the company’s then-current senior unsecured credit ratings.

Advances will be used for general corporate purposes.

The facility has one financial covenant, requiring that consolidated debt to total capitalization ratio be less than or equal to 65%.

When the new credit agreement was signed, the company had $50 million of loans outstanding and no letters of credit issued under the letter of credit subfacility.

The energy company is based in Sioux Falls, S.D.

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