01—Abstract
Summary
Summary of the 8-K filed March 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison, Inc. (Con Edison) and its subsidiaries, CECONY and O&R, have entered into a new Credit Agreement, dated March 11, 2026, with Bank of America, N.A., as Administrative Agent.
This new agreement, with a total credit availability of up to $3.5 billiona, replaces and terminates two prior credit facilities dated March 27, 2023, and March 24, 2025. The facility is structured as a revolving credit line, allowing for loans and letters of credit, and will be used primarily to support the companies' commercial paper programs and for general corporate purposes. The new Credit Agreement extends the maturity date to March 11, 2031, with potential for two one-year extensions.
The aggregate commitment is $3.5 billionb, with specific allocations for CECONY ($3.5 billion), Con Edison ($800 million, potentially up to $1 billion), and O&R ($250 million, potentially up to $300 million). The agreement also includes provisions for increasing the aggregate facility size by up to $500 million, subject to certain conditions.
The terms include variable interest rates and fees tied to the companies' credit ratings. This refinancing demonstrates Con Edison's proactive approach to managing its liquidity and financing structure.
02—Key points
Key Highlights
- New $3.5 billion revolving credit facility established with Bank of America, N.A., replacing two previous agreements.
- The Credit Agreement matures on March 11, 2031, with options for two additional one-year extensions.
- Total credit availability includes up to $3.5 billion for CECONY, $800 million (potentially $1 billion) for Con Edison, and $250 million (potentially $300 million) for O&R.
- An option exists to increase the aggregate facility size by up to $500 million.
- Funds will be used to support commercial paper programs and for general corporate purposes.
- Borrowings will generally be at variable interest rates, with interest and fees reflecting the companies' credit ratings.
- Key covenants include maintaining a debt-to-total capital ratio not exceeding 0.65 to 1 and limitations on liens.
03—Questions
Frequently Asked Questions
What is the primary purpose of this new Credit Agreement?
The primary purpose of the new Credit Agreement is to support Consolidated Edison's commercial paper programs and to provide general corporate financing for Con Edison and its subsidiaries, CECONY and O&R. It provides a significant source of revolving credit liquidity.
How does this new agreement affect Con Edison's existing debt?
This new Credit Agreement replaces and terminates two prior credit facilities, dated March 27, 2023, and March 24, 2025. This is a refinancing of existing credit lines, consolidating them into a new, larger facility with a longer maturity.
What are the key financial covenants investors should be aware of?
Key financial covenants include maintaining a consolidated debt to consolidated total capital ratio not to exceed 0.65 to 1. Additionally, the companies must not create, assume, or suffer any lien or encumbrance on their assets exceeding 10% of their consolidated net tangible assets.
What is the total amount of credit available under the new agreement?
The new Credit Agreement provides for an aggregate amount of up to $3.5 billion in credit available on a revolving basis, with the potential to increase this by an additional $500 million under certain conditions.
04—Continue