8-KMaterial AgreementsFinancial EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Material Agreement (Apr 1, 2019)

Filed April 1, 2019For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) announced an amendment to its existing $2.25 billion Credit Agreement, effective April 1, 2019. This amendment, entered into by Con Edison and its subsidiaries Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc., primarily extends the termination date of the credit facility by one year, from December 7, 2022, to December 7, 2023. This extension applies to lenders holding aggregate commitments of $2.2 billion. The amendment also incorporates technical updates, including the addition or amendment of certain definitions and the inclusion of a provision for a LIBOR successor rate, reflecting industry-wide shifts away from LIBOR. These modifications are aimed at ensuring the continued operational and financial flexibility of the company's credit arrangements.

Key Highlights

  • 1Con Edison amended its $2.25 billion Credit Agreement, originally dated December 7, 2016.
  • 2The amendment extends the credit facility's termination date by one year, from December 7, 2022, to December 7, 2023.
  • 3The extension specifically applies to lenders with aggregate commitments totaling $2.2 billion.
  • 4The agreement includes updates to definitions within the Credit Agreement.
  • 5A provision for a LIBOR successor rate has been added, addressing the transition away from LIBOR.
  • 6The amendment enhances the company's long-term borrowing capacity and financial flexibility.

Frequently Asked Questions

The primary change is the extension of the credit facility's termination date by one year, from December 7, 2022, to December 7, 2023, for the majority of the lenders.

The Credit Agreement is for $2.25 billion. The one-year extension applies to lenders with aggregate commitments of $2.2 billion, which represents the significant majority of the credit facility.

The inclusion of a LIBOR successor rate provision is a proactive measure to prepare for the eventual discontinuation of the London Interbank Offered Rate (LIBOR) and to ensure a smooth transition to an alternative reference rate.

No, this filing does not suggest immediate financial distress. Extending the maturity of a credit facility is a common practice for companies to maintain financial flexibility and manage their debt obligations effectively, especially in anticipation of market-wide rate transitions like the move away from LIBOR.