8-KMaterial AgreementsFinancial EventsExhibits & Filings

ATMOS ENERGY CORP 8-K Report, Material Agreement (Dec 10, 2010)

Filed December 10, 2010For Securities:ATO

Summary

This 8-K filing announces that Atmos Energy Marketing, LLC (AEM), a subsidiary of Atmos Energy Corporation, entered into a Fifth Amended and Restated Credit Agreement on December 8, 2010. The primary purpose of this amendment and restatement is to modify AEM's existing credit facility, extending its term by three years to December 8, 2013, and reducing the overall size of the facility from $450 million to $200 million. Key changes also include a reduction in the commitment fee and interest rates for borrowings. Notably, the agreement introduces an "accordion feature" that allows the facility to be increased by up to an additional $300 million, bringing the potential maximum to $500 million, subject to lender approval and new commitments. The credit facility will continue to be used for issuing letters of credit and providing working capital for AEM's natural gas marketing business.

Key Highlights

  • 1Atmos Energy Marketing, LLC (AEM) entered into a Fifth Amended and Restated Credit Agreement.
  • 2The credit facility's term has been extended by three years, now maturing on December 8, 2013.
  • 3The total size of the credit facility has been reduced from $450 million to $200 million.
  • 4Commitment fees and interest rates on borrowings have been decreased.
  • 5An accordion feature allows the facility to be potentially increased by up to $300 million, up to a maximum of $500 million, with lender approval.
  • 6The credit facility will continue to support AEM's natural gas marketing business through working capital and letters of credit.
  • 7The agreement includes covenants related to financial ratios, indebtedness, and mergers, with the facility secured by AEM's assets and guaranteed by its parent company.

Frequently Asked Questions

This filing reports on the execution of a material definitive agreement, specifically the Fifth Amended and Restated Credit Agreement for Atmos Energy Marketing, LLC (AEM), a subsidiary of Atmos Energy Corporation. This agreement amends and restates AEM's existing credit facility.

The key changes include extending the maturity date to December 8, 2013, reducing the facility size from $450 million to $200 million, lowering commitment fees and interest rates, and adding an accordion feature that allows for potential increases up to $500 million. Additionally, a "change of management" clause was removed for greater operational flexibility.

The credit facility will continue to be used primarily to issue letters of credit for AEM's account and to provide working capital for its natural gas marketing business.

Borrowings will be based on a base rate or an offshore rate (linked to LIBOR), plus an applicable margin ranging from 1.875% to 2.25%, depending on AEM's net worth. Fees for letters of credit will range from 1.875% to 2.5% annually.