8-KFinancial EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Financial Obligation (Apr 15, 2005)

Filed April 15, 2005For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiaries, Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc., have entered into a new 5-year Credit Agreement totaling $937.5 million, effective April 14, 2005. This new facility replaces a previous $387.5 million agreement and operates alongside an existing $562.5 million agreement, effectively providing significant revolving credit capacity. The primary purpose of these credit facilities is to support the companies' commercial paper programs and for general corporate purposes. This update indicates a strategic move to enhance liquidity and financial flexibility, particularly in supporting short-term debt instruments like commercial paper. The new agreement offers substantial borrowing power, with specific allocations for each subsidiary, and includes provisions for potential increases. Investors should note the termination of the older credit agreement and the continued availability of the other existing agreement, ensuring robust access to funding for Con Edison's operations.

Key Highlights

  • 1Consolidated Edison, Inc. (Con Edison) and its subsidiaries have entered into a new 5-year Credit Agreement dated April 14, 2005.
  • 2The aggregate amount available under the new Credit Agreement is $937.5 million, provided by various banks with JPMorgan Chase Bank, N.A. as Administrative Agent.
  • 3This new agreement replaces a previously terminated 3-year Credit Agreement that provided up to $387.5 million.
  • 4An existing 3-year Credit Agreement dated November 26, 2003, with a $562.5 million facility, remains in place.
  • 5The companies intend to use these credit facilities to support their commercial paper programs and for general corporate purposes.
  • 6The Credit Agreement includes provisions for potential increases in the aggregate principal amount by up to $270 million.
  • 7Each subsidiary is severally obligated for loans and letters of credit issued on its behalf, with specific availability limits for Con Edison of New York, Con Edison, and Orange and Rockland Utilities.

Frequently Asked Questions

The primary purpose of the new 5-year Credit Agreement is to support Consolidated Edison's commercial paper programs and for general corporate purposes, ensuring sufficient liquidity for the company and its subsidiaries.

Following the execution of the new Credit Agreement, Consolidated Edison and its subsidiaries have access to a total of $937.5 million under the new 5-year agreement and $562.5 million under the existing 3-year agreement, totaling $1.5 billion in revolving credit facilities, before considering potential increases.

The 3-year Credit Agreement dated November 27, 2002, which provided for up to $387.5 million, has been terminated. The 3-year Credit Agreement dated November 26, 2003, with up to $562.5 million, remains in place.

Yes, the banks' commitments can be terminated upon an 'Event of Default.' This includes failure to pay principal, interest, or fees when due; failure to meet covenants (such as debt-to-capital ratio not exceeding 0.65 to 1); material misrepresentation; cross-default on other significant financial obligations; or a change of control of a company. In such events, outstanding loans may become immediately due and payable.