8-KEarnings & ResultsLeadership ChangesMaterial Agreements+2

ATMOS ENERGY CORP 8-K Report, Material Agreement (Nov 7, 2007)

Filed November 7, 2007For Securities:ATO

Summary

Atmos Energy Corporation (ATO) has filed an 8-K report on November 7, 2007, primarily to announce the execution of a new $300 million Revolving Credit Agreement (364 Day Facility) effective November 1, 2007. This new facility replaces a similar agreement that was set to expire. The credit facility is designed to provide additional working capital and contains terms substantially consistent with the Company's existing $600 million working capital facility. The report also details the termination of the previous credit agreement without incurring early termination penalties. Additionally, Atmos Energy announced its financial results for the fourth quarter and full fiscal year ended September 30, 2007, and the appointment of Richard W. Douglas to its Board of Directors, effective November 8, 2007.

Key Highlights

  • 1Atmos Energy entered into a new $300 million Revolving Credit Agreement (364 Day Facility) on November 1, 2007, to provide additional working capital.
  • 2The new credit facility replaces a previous $300 million agreement that was nearing expiration.
  • 3The terms of the new facility are substantially similar to the Company's previous 364-day facility and its existing $600 million 5-year working capital facility.
  • 4Borrowing interest rates under the new facility are variable, dependent on the Company's credit ratings and based on either a prime rate or LIBOR, with additional applicable margins.
  • 5The credit facility expires on October 30, 2008, with all outstanding amounts due at that time.
  • 6The Company announced its financial results for the fourth quarter and full fiscal year ended September 30, 2007.
  • 7Richard W. Douglas was elected to the Board of Directors, effective November 8, 2007.

Frequently Asked Questions

The primary purpose of this filing is to report the entry into a new $300 million Revolving Credit Agreement (364 Day Facility) and the termination of a prior, similar agreement. It also announces the Company's recent financial results and a new board member.

The new $300 million credit facility has terms substantially similar to the previous 364-day facility it replaces and the Company's existing $600 million 5-year working capital facility. It is intended to provide additional working capital.

Interest rates are variable, based on the Company's credit ratings and either a base rate (prime rate or Federal Funds Rate + 0.5%) or LIBOR plus an applicable margin (0.30% to 0.75%). Commitment fees on unused portions range from 0.055% to 0.110%, and utilization fees (if applicable) range from 0.050% to 0.100%.

Yes, the facility includes usual and customary covenants, such as limitations on liens, asset sales, and mergers. A key covenant is that the Company's debt to capitalization ratio must remain at or below 0.70 to 1.00, with specific exclusions for pension liabilities and certain hybrid securities.