Summary
Atmos Energy Corporation (ATO) has entered into two new senior unsecured revolving credit facilities, a $1.5 billion "Three Year Credit Facility" and a $1.5 billion "Five Year Credit Facility," both with Crédit Agricole Corporate and Investment Bank as Administrative Agent. These new facilities replace previously existing credit lines and are designed to provide flexibility for working capital, capital expenditures, and general corporate purposes. The "Three Year Credit Facility" has an initial term of three years, extendable by two additional one-year periods (up to five years total), while the "Five Year Credit Facility" has an initial term of five years, extendable by two additional one-year periods (up to seven years total). Both facilities include provisions for increasing commitments by up to $250 million and require a 30-day "clean-up period" annually, ensuring no borrowings remain outstanding for an extended duration. The new credit agreements contain standard covenants, including a debt to capitalization ratio not exceeding 0.70 to 1.00.
Key Highlights
- 1Atmos Energy secured two new revolving credit facilities totaling $3.0 billion ($1.5 billion each).
- 2The facilities include a 3-year and a 5-year term, with options to extend each by two additional years.
- 3Both credit lines have an accordion feature allowing for an increase in commitments of up to $250 million.
- 4Proceeds from these facilities are earmarked for working capital, capital expenditures, and general corporate purposes.
- 5The new agreements replace prior credit facilities without incurring early termination penalties.
- 6Key covenants include a debt to capitalization ratio limitation of 0.70 to 1.00.
- 7Interest rates on borrowings are variable, based on credit ratings and either a base rate or Term SOFR, plus applicable margins and fees.