National Fuel Gas gets $250 million delayed-draw term loan

By Mary-Katherine Stinson

Lexington, Ky., July 1 – National Fuel Gas Co. entered a 364-day credit agreement on June 30 with Wells Fargo Bank, NA, as administrative agent providing a $250 million unsecured committed delayed-draw term loan credit facility, according to an 8-K filing with the Securities and Exchange Commission Friday.

Borrowings bear interest at term SOFR, plus an adjustment of 10 basis points, plus an applicable margin of 112.5 bps. There is a ticking fee of 10 bps on the unfunded term loan commitments.

The agreement includes a covenant that the company’s debt to capitalization ratio cannot exceed 0.65 at the last day of any fiscal quarter.

The credit agreement contains a cross-default provision. The company’s or significant subsidiaries’ failure to make payments on other borrowing arrangements totaling $40 million or more, or the occurrence of certain events affecting those other arrangements, could trigger an obligation to repay any amounts outstanding under the committed credit facilities.

The facility matures June 29, 2023.

Bank of America, NA and PNC Bank, NA are the syndication agents.

Wells Fargo Bank, NA, BofA Securities, Inc. and PNC Bank, NA are the co-bookrunners and lead arrangers.

The facility has commitments from Wells Fargo Bank, NA; Bank of America, NA; PNC Bank, NA; U.S. Bank NA; and Toronto-Dominion Bank, New York Branch as lenders.

Proceeds may be used to repay existing debt under its commercial paper program, other short-term credit facilities, and maturing long-term debt obligations and for general corporate purposes of the company and its subsidiaries including for working capital, capital expenditure and other lawful corporate purposes and to fund certain permitted acquisitions and other investments.

National Fuel Gas is a natural gas provider based in Williamsville, N.Y.

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