Arizona Public Service gets $500 million five-year revolving facility

By Angela McDaniels

Tacoma, Wash., April 9 - Arizona Public Service Co. entered into a $500 million revolving credit facility due April 9, 2018 on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest based on the company's senior debt ratings.

The company will use the new facility for general corporate purposes and to issue letters of credit.

Barclays Bank plc is the agent, and Royal Bank of Scotland plc is the syndication agent. Bank of America, NA, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA are the documentation agents.

The facility includes customary covenants, including that Arizona Public Service maintain a consolidated debt-to-capitalization ratio no greater than a prescribed level and comply with certain lien restrictions.

The facility also includes customary events of default, including a cross-default provision related to Arizona Public Service's or its subsidiaries' debt and a change-of-control provision relating to its parent company, Pinnacle West Capital Corp.

On Tuesday, the company terminated its prior $500 million revolver with Barclays as agent. It would have expired on Feb. 13, 2015.

Arizona Public Service is an electric utility. Pinnacle West Capital is a holding company that derives essentially all of its revenues and earnings through Arizona Public Service. Both are based in Phoenix.

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