8-KLeadership ChangesMaterial AgreementsFinancial Events

ATMOS ENERGY CORP 8-K Report, Material Agreement (Mar 31, 2006)

Filed March 31, 2006For Securities:ATO

Summary

This Form 8-K filing by Atmos Energy Corporation (ATO) on March 31, 2006, primarily details a material definitive agreement related to its subsidiary, Atmos Energy Marketing, LLC (AEM). AEM entered into the Second Amendment to its Uncommitted Second Amended and Restated Credit Agreement, which notably extends the facility's term by an additional 12 months, from March 31, 2006, to March 31, 2007. This extension is crucial for AEM's ongoing working capital needs for its natural gas marketing business and signifies continued financial support from its lenders. The filing also announces a key executive management change. Mark H. Johnson will be promoted to Senior Vice President, Nonutility Operations, of Atmos Energy and President of Atmos Energy Holdings, Inc., effective April 1, 2006, succeeding the retiring J.D. Woodward. Mr. Johnson's background in natural gas trading and marketing operations positions him well for these expanded responsibilities. The company has also entered into a Change in Control Severance Agreement with Mr. Johnson to provide for certain benefits in the event of termination following a change in control.

Key Highlights

  • 1Atmos Energy Marketing, LLC (AEM) extended its credit facility for 12 months, now expiring March 31, 2007.
  • 2The extended credit facility continues to support AEM's working capital needs for its natural gas marketing business.
  • 3No substantive changes were made to the credit facility's terms beyond the extension.
  • 4Interest rates on revolving loans are floating, based on a base rate plus a margin of 0.25% (currently 8.00% per annum).
  • 5Interest rates on offshore rate loans are floating, based on LIBOR plus a margin of 1.250% to 1.625% (currently 6.08% per annum).
  • 6Mark H. Johnson appointed Senior Vice President, Nonutility Operations, and President of Atmos Energy Holdings, Inc., effective April 1, 2006.
  • 7Johnson succeeds retiring J.D. Woodward in his new roles.

Frequently Asked Questions

The primary purpose of the Second Amendment is to extend the term of the credit facility by an additional 12 months, from March 31, 2006, to March 31, 2007. This extension ensures continued availability of funding for Atmos Energy Marketing, LLC's (AEM) working capital needs for its natural gas marketing business.

No, the filing states that there were no other substantive changes made to the terms of the facility besides the extension of its term. The credit facility remains uncommitted and fully discretionary.

Mark H. Johnson is being promoted to Senior Vice President, Nonutility Operations, of Atmos Energy and President of Atmos Energy Holdings, Inc., effective April 1, 2006. He will also continue to serve as President of Atmos Energy Marketing, LLC (AEM). He succeeds J.D. Woodward, who is retiring.

The credit facility is secured by substantially all of the assets of AEM and is guaranteed by its parent, Atmos Energy Holdings, Inc.