8-KMaterial AgreementsFinancial EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Material Agreement (Mar 31, 2022)

Filed March 31, 2022For Securities:ED

Summary

Consolidated Edison, Inc. (ED) announced through its subsidiary, Consolidated Edison Company of New York, Inc. (Con Edison of New York), the entry into a 364-Day Revolving Credit Agreement on March 31, 2022. This agreement provides Con Edison of New York with access to up to $750 million in loans, primarily intended to support its commercial paper program and for other general corporate purposes. The credit facility has a maturity date of March 30, 2023. This new credit line offers financial flexibility by ensuring access to funds for short-term needs and operational support. Investors should note that borrowings under this agreement will generally be at variable interest rates, and the terms are subject to Con Edison of New York's credit rating. The agreement includes customary covenants, such as a debt-to-capital ratio not exceeding 0.65 to 1, and limits on liens. The existence of an Event of Default, including a change of control or significant financial missteps, could lead to the termination of commitments and immediate repayment of outstanding loans.

Key Highlights

  • 1Con Edison of New York entered into a $750 million 364-Day Revolving Credit Agreement.
  • 2The credit facility is primarily intended to support the company's commercial paper program.
  • 3The agreement matures on March 30, 2023.
  • 4Borrowings under the agreement will generally bear variable interest rates.
  • 5Key covenants include a maximum debt-to-capital ratio of 0.65 to 1.
  • 6Events of Default, if triggered, can lead to loan acceleration and termination of credit commitments.
  • 7Bank of America, N.A. serves as the Administrative Agent for the credit facility.

Frequently Asked Questions

The primary purpose of the 364-Day Revolving Credit Agreement is to support Consolidated Edison Company of New York's commercial paper program. It can also be used for other general corporate purposes, providing financial flexibility for short-term needs.

The credit facility provides access to up to $750 million. The agreement has a term of 364 days, with the lenders' commitments terminating on March 30, 2023.

A key financial covenant requires that the ratio of consolidated debt to consolidated total capital of Con Edison of New York not exceed 0.65 to 1 at any time. Additionally, there are restrictions on creating or assuming liens or other encumbrances on the company's assets, with certain exceptions.

An 'Event of Default' can trigger the acceleration of loans and termination of credit commitments. Examples of Events of Default include failure to pay principal or interest, breaches of covenants (like the debt-to-capital ratio), material inaccuracies in representations, cross-default to other significant financial obligations, and other customary events.