Oklahoma Gas and Electric parent obtains $1 billion 364-day unsecured term loan

By Rebecca Melvin

New York, March 9 – OGE Energy Corp., the parent company of Oklahoma Gas & Electric Co. entered into a $1 billion, 364-day unsecured term loan agreement with Wells Fargo Bank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility was entered into on March 5.

Pricing is Libor plus 75 basis points, with a 0% Libor floor.

The proceeds of the single-draw loan may be used for working capital and general corporate purposes. The company intends to loan up to $470 million of the proceeds to OG&E in one or more advances under an intercompany note issued by OG&E to OGE on March 5. The proceeds may also be used to make a capital contribution to OG&E, which will use the funds to pay fuel and purchased power costs incurred during a February 2021 weather event.

The term loan agreement contains substantially the same covenants as OGE Energy’s $450 million revolving credit agreement, which was amended on Jan. 12.

Wells Fargo was also the bookrunner and lead arranger.

Equal lenders on the loan were Wells Fargo, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., MUFG Union Bank, NA, Royal Bank of Canada and U.S. Bank NA.

The electric utility is based in Oklahoma City.

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