What is the size and maturity of the new credit facility?

The initial principal amount available under the Credit Agreement is $300 million, with a maturity date of March 3, 2025. The agreement also provides for an incremental term loan facility of up to $100 million, although no lender is obligated to provide these incremental loans.

Who guarantees the obligations under the Credit Agreement?

Alliant Energy Corporation guaranteed the payment and performance of AEF's obligations under the Credit Agreement.

What will the borrowed funds be used for?

Advances under the Credit Agreement will be used to refinance existing indebtedness of AEF and for general corporate purposes.

What financial covenants and restrictions apply to the company?

Alliant Energy must maintain a consolidated debt-to-capital ratio of not greater than 65%. The agreement also restricts liens on property, subject to exceptions including liens securing obligations up to 10% of consolidated assets, and requires that asset sale proceeds above 25% of consolidated assets (with certain exclusions) be used to reduce certain debt commitments.

What events could cause the lenders to accelerate repayment?

Customary events of default apply, including a cross-default triggered if Alliant Energy or its domestic subsidiaries default on debt (other than non-recourse debt) totaling $100 million or more. If an event of default is continuing, lenders may declare outstanding obligations immediately due and payable. A bankruptcy order for relief with respect to AEF or Alliant Energy would also make obligations immediately due.

LNT 8-K: Material Agreements & Financial Events

01—Abstract

Summary

Summary of the 8-K filed March 5, 2024. Cited figures are marked; the original filing is the authoritative source.

On March 1, 2024, Alliant Energy Finance, LLC (AEF), a wholly-owned subsidiary of Alliant Energy Corporation, entered into a one-year amended and restated term loan credit agreement with U.S. Bank National Association, as administrative agent, and the several lenders party thereto.

The initial principal amount available is $300 million^a, maturing March 3, 2025, with an incremental term loan facility of up to $100 million for which no lender has any obligation to provide funds. Alliant Energy guaranteed AEF's obligations under the facility, and advances will be used to refinance existing AEF indebtedness and for general corporate purposes. The agreement amends and restates the existing term loan credit agreement.

The Credit Agreement includes several covenants that investors should note. Alliant Energy must maintain a consolidated debt-to-capital ratio of not greater than 65%. The agreement restricts liens on property of AEF, Alliant Energy, and its subsidiaries, subject to exceptions such as liens securing obligations of up to 10% of consolidated assets and non-recourse debt limits of $100 million^b each at Interstate Power and Light Company, Wisconsin Power and Light Company, and Alliant Energy's non-utility subsidiaries.

It also requires that certain asset sale proceeds exceeding 25% of consolidated assets be used to reduce specified debt commitments during the term. The agreement contains customary events of default, including a cross-default triggered by a default on debt (other than non-recourse debt) of $100 million^c or more by Alliant Energy or its domestic subsidiaries.

Upon an continuing event of default, lenders may accelerate outstanding obligations, and a bankruptcy order for relief with respect to AEF or Alliant Energy would make obligations immediately due and payable. The filing also reports the agreement under Item 2.03 as a direct financial obligation.

02—Key points

Key Highlights

AEF, a wholly-owned subsidiary of Alliant Energy Corporation, entered into an amended and restated one-year term loan credit agreement on March 1, 2024.
Initial principal amount available is $300 million, with maturity on March 3, 2025.
An incremental term loan facility of up to $100 million is provided, but no lender is obligated to provide it.
Alliant Energy guaranteed payment and performance of AEF's obligations under the Credit Agreement.
Proceeds will refinance existing AEF indebtedness and fund general corporate purposes.
Key covenant: Alliant Energy must maintain a consolidated debt-to-capital ratio of no more than 65%.
Cross-default provision is triggered by defaults on debt (other than non-recourse debt) of $100 million or more.

03—Questions

Frequently Asked Questions

What is the size and maturity of the new credit facility?
The initial principal amount available under the Credit Agreement is $300 million, with a maturity date of March 3, 2025. The agreement also provides for an incremental term loan facility of up to $100 million, although no lender is obligated to provide these incremental loans.
Who guarantees the obligations under the Credit Agreement?
Alliant Energy Corporation guaranteed the payment and performance of AEF's obligations under the Credit Agreement.
What will the borrowed funds be used for?
Advances under the Credit Agreement will be used to refinance existing indebtedness of AEF and for general corporate purposes.
What financial covenants and restrictions apply to the company?
Alliant Energy must maintain a consolidated debt-to-capital ratio of not greater than 65%. The agreement also restricts liens on property, subject to exceptions including liens securing obligations up to 10% of consolidated assets, and requires that asset sale proceeds above 25% of consolidated assets (with certain exclusions) be used to reduce certain debt commitments.
What events could cause the lenders to accelerate repayment?
Customary events of default apply, including a cross-default triggered if Alliant Energy or its domestic subsidiaries default on debt (other than non-recourse debt) totaling $100 million or more. If an event of default is continuing, lenders may declare outstanding obligations immediately due and payable. A bankruptcy order for relief with respect to AEF or Alliant Energy would also make obligations immediately due.

04—Continue

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