Spire enters into $1.3 billion restated five-year credit agreement

By Wendy Van Sickle

Columbus, Ohio, July 28 – Spire Inc., Spire Missouri Inc. and Spire Alabama Inc. entered into an amended and restated loan agreement with Wells Fargo Bank NA as administrative agent, providing for a total credit commitment of $1.3 billion with a five-year maturity, according to an 8-K filing with the Securities and Exchange Commission.

The agreement amends and restates the agreement dated Dec. 14, 2016.

The new loan agreement has sublimits of $450 million for Spire, $575 million for Spire Missouri and $275 million for Spire Alabama. The sublimits may be reallocated from time to time within the $1.3 billion.

Borrowings by Spire Missouri or Spire Alabama are due within 364 days after being made.

The borrowers may request an increase in the revolving credit commitment of up to $300 million.

There is a $50 million sublimit for letters of credit and a $100 million sublimit for swingline loans.

Borrowings bear interest at SOFR + 10 bps CSA plus a margin ranging from 87.5 bps to 150 bps, depending on the applicable borrower’s senior unsecured debt rating. The margin is subject to annual ESG-based sustainability adjustments. It can be increased or decreased by up to 5 bps based on key performance indicator sustainability metrics.

There is a commitment fee ranging from 7.5 bps to 22.5 bps, which also depends on ratings and may be increased or decreased by up to 1 bp based on key performance indicator sustainability metrics.

Each borrower expects to use the loan agreement for general corporate purposes, including short-term borrowings and letters of credit.

Wells Fargo Securities, LLC, JPMorgan Chase Bank, NA and U.S. Bank NA are the lead arrangers and bookrunners.

JPMorgan and U.S. Bank are the co-syndication agents.

Bank of Montreal, Chicago Branch, Mizuho Bank, Ltd., Morgan Stanley Senior Funding, Inc., Regions Bank, Royal Bank of Canada and TD Bank, NA are the documentation agents.

Wells Fargo Securities is the sustainability structuring agent.

There is a financial covenant limiting each borrower’s consolidated debt to 70% of its capitalization.

Spire is natural gas distribution company based in St. Louis.

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