OGE, units enter $1.55 billion total of five-year revolving loans

By Susanna Moon

Chicago, Dec. 19 - OGE Energy Corp. and its subsidiaries Oklahoma Gas and Electric Co. and Enogex LLC each entered into five-year unsecured revolving credit facilities last Tuesday with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The companies may extend the facilities twice for an additional year.

JPMorgan Chase Bank, NA was syndication agent with Mizuho Corporate Bank, Ltd., Royal Bank of Scotland plc, UBS Securities LLC and Union Bank, NA as co-documentation agents.

OGE loan details

OGE Energy's $750 million facility accrues interest at Libor plus 90 basis points to 152.5 bps, based the company's credit ratings. The facility fee is 10 bps to 35 bps.

The facility replaced the company's $600 million revolving credit facility set to expire on Dec. 6, 2012. There were no borrowings outstanding under the old facility. As of Dec. 13, there were no outstanding borrowings under the new facility.

Oklahoma Gas loan

Oklahoma Gas' $400 million facility accrues interest at Libor plus 79.5 bps to 147.5 bps. The facility fee is 8 bps to 27.5 bps.

The facility replaced the company's $400 million facility set to expire Dec. 6, 2012. There was $2,225,510.32 of outstanding standby letters of credit outstanding under the old facility, which were assumed under the new facility at closing.

Enogex facility

Enogex's $400 million facility accrues interest at Libor plus 100 bps to 187.5 bps. The facility fee is 12.5 bps to 37.5 bps.

The facility replaced the company's $250 million facility set to expire on April 1, 2013. There was $150 million of outstanding debt under the old facility, which was repaid with a like amount of debt under the new facility.

More details

The facilities may be increased by up to $200 million for OGE Energy, by up to $150 million for Oklahoma Gas and by up to $250 million for Enogex.

The letters of credit have a sublimit of $100 million for OGE Energy, $100 million for Oklahoma Gas and $200 million for Enogex.

Proceeds will be used to refinance debt and for general corporate purposes, including commercial paper liquidity support, distributions and acquisitions.

The OGE Energy and Oklahoma Gas facilities contain covenants requiring the borrower to maintain a maximum debt to capitalization ratio of 65% as well as those that restrict mergers and consolidations, sales of all or substantially all assets, incurrence of liens and transactions with affiliates.

The Enogex facility contains a financial covenant requiring the company to maintain a ratio of consolidated funded debt to consolidated EBITDA of no more than 5 times unless, for any three fiscal quarters including and following any fiscal quarter in which the total value of one or more acquisitions made by Enogex or its subsidiaries exceeds $25 million for the prior 12-month period, in which case the ratio may be up to 5.5 times.

Oklahoma City-based OGE is the parent company of Enogex and Oklahoma Gas and Electric Co.

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