OGE Energy, Oklahoma Gas get revolvers totaling $1.1 billion

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – OGE Energy Corp. and its subsidiary, Oklahoma Gas & Electric Co., each entered into a new unsecured five-year revolving credit facility on Dec. 17, according to an 8-K filing with the Securities and Exchange Commission.

Each of the borrowers has the right to request up to two one-year extensions to its revolver, each of which has an original maturity date of Dec. 17, 2026.

Each of the revolvers is for $550 million, and each is with Wells Fargo Bank, NA as agent, JPMorgan Chase Bank, NA and Mizuho Bank, Ltd. as co-syndication agents, MUFG Union Bank, NA, Royal Bank of Canada and U.S. Bank NA as co-documentation agents.

OGE Energy’s revolver replaced the company’s $450 million revolver entered into on March 8, 2017.

Similarly, Oklahoma Gas & Electric’s revolver replaced its $450 million revolver entered into on March 8, 2017.

Borrowings under OGE Energy’s revolver bears interest at a Eurodollar rate plus a margin ranging from 80 basis points to 147.5 bps, and the facility fee ranges from 7.5 bps to 27.5 bps, both depending on credit ratings.

Oklahoma Gas & Electric’s revolver bears interest at a Eurodollar rate plus a margin ranging from 69 bps to 157.5 bps, and the facility fee ranges from 6 bps to 22.5 bps, both depending on credit ratings.

Each of the revolvers has a $100 million sublimit for letters of credit, and each has a $150 million accordion feature.

Each borrower must maintain a maximum debt to capitalization ratio of 65%.

The electric utilities are based in Oklahoma City.

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