FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / News / Read News

Print

BofA Provides $42MM Credit Facility in Gas Natural Refinancing

October 20, 2016, 07:32 AM
Filed Under: Energy

Gas Natural Inc. has closed a $92 million debt refinancing following receipt of regulatory approvals to reorganize its utilities within a wholly-owned subsidiary.   

The financing consists of two components:

  • A $50 million, 4.23% fixed-rate senior, unsecured, twelve-year term note due October 2028, held by TIAA-CREF.
  • A $42 million unsecured revolving credit facility held by Bank of America, N.A., with a five year maturity due October 2021.  This facility incurs variable interest on a grid structure, based on the Company's leverage ratio.

James E. Sprague, Chief Financial Officer of Gas Natural, commented, "The completion of the refinancing is a major milestone in our strategy to improve the operational and financial structure of the Company.  It provides for greater financial flexibility, access to capital for all of our utilities and simplifies our lending agreements."

The new financing facilities allowed the Company to retire its debt with Allstate/CUNA, Sun Life and NIL Funding, as well as provide additional capital to support continued execution of its growth strategy.
.
Gas Natural Inc., a holding company, distributes and sells natural gas to residential, commercial, and industrial customers.  It distributes approximately 21 billion cubic feet of natural gas to roughly 68,000 customers through regulated utilities operating in Montana, Ohio, Maine and North Carolina.







Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.