Southwest Gas gets $450 million 364-day term loan via JPMorgan

By William Gullotti

Buffalo, N.Y., Jan. 20 – Southwest Gas Corp. entered into a $450 million 364-day term loan credit agreement with JPMorgan Chase Bank, NA as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The loan matures Jan. 19, 2024, bearing interest at SOFR plus 95 basis points.

Southwest is required to maintain a ratio of funded debt to total capitalization not to exceed 0.70 to 1.00 at the end of any fiscal quarter during the life of the loan.

Proceeds from the loan will be used to fund higher than expected natural gas costs for the November 2022 through March 2023 winter period, attributed to historically low storage levels, unexpected upstream pipeline maintenance events and cold weather conditions across the western region.

JPMorgan is also the lead arranger and bookrunner.

The natural gas distributor is based in Las Vegas.

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