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

By Tali Rackner

Norfolk, Va., Sept. 2 – Arizona Public Service Co. entered into an up to $500 million revolving credit facility on Wednesday with Barclays Bank plc as agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility matures on Sept. 2, 2020.

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

The facility will be used for general corporate purposes, including as a standby facility to support commercial paper issuances. It can also be used for letters of credit.

Mizuho Bank, Ltd. is the syndication agent. Bank of America, NA, BNP Paribas Securities Corp., JPMorgan Chase Bank, NA, MUFG Union Bank, NA, SunTrust Bank and Wells Fargo Bank, NA are co-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 Wednesday, the company terminated its prior $500 million revolver maturing April 9, 2018 with Barclays as agent.

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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