Summary
Atmos Energy Corporation (ATO) has announced the closing of a $200 million senior unsecured term loan facility on April 9, 2020. This new facility, provided by Crédit Agricole Corporate and Investment Bank and Canadian Imperial Bank of Commerce, will be used to repay outstanding commercial paper, thereby maintaining the company's liquidity position. The company reported that its financial results and capital spending for the quarter and year-to-date periods ending March 31, 2020, are in line with expectations despite the evolving circumstances surrounding the COVID-19 pandemic. This move demonstrates Atmos Energy's proactive management of its short-term debt and its commitment to maintaining financial flexibility. With approximately $2.0 billion in liquidity available as of March 31, 2020, and this new term loan increasing total liquidity to $2.2 billion, the company appears well-positioned to continue its operations and long-term business objectives, including modernizing its natural gas delivery network. Investors can look forward to further updates during the company's quarterly earnings call scheduled for May 7, 2020.
Key Highlights
- 1Secured a new $200 million senior unsecured term loan facility on April 9, 2020.
- 2Proceeds will be used to repay $200 million of outstanding commercial paper.
- 3The term loan facility matures on April 9, 2022.
- 4Interest rates are variable, based on credit ratings and either a base rate or LIBOR, with an approximate current effective rate of 2.29% for a twelve-month LIBOR period.
- 5Total liquidity will increase to $2.2 billion after the commercial paper repayment.
- 6Q1 2020 results and year-to-date performance are in line with expectations.
- 7The company is monitoring the COVID-19 pandemic and continues essential services and compliance activities.