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Piedmont Natural Gas seals $650 million five-year revolver commitments
By Susanna Moon
Chicago, Oct. 3 - Piedmont Natural Gas Co., Inc. obtained $650 million of commitments under an amended five-year revolving facility Monday with Wells Fargo Bank, NA as administrative agent, swingline lender, letter-of-credit issuer and lender, according to an 8-K filing with the Securities and Exchange Commission.
Interest on the loans will be Libor plus 90 basis points. The unused fee is 8.5 bps.
The company may tap up to $10 million of the revolver for issuance of letters of credit, and it may request that the facility be upsized by $200 million for total commitments of up to $850 million.
Proceeds will be used for general working capital needs and other corporate purposes, including backup for the company's commercial paper program.
The credit facility matures in October 2017.
The company may prepay the loans with customary breakage costs.
Branch Banking and Trust Co., Bank of America, NA, JPMorgan Chase Bank, NA, PNC Bank, NA, U.S. Bank NA and Royal Bank of Canada are lenders.
The covenants limit the ratio of consolidated funded debt to total capitalization to 0.7 times.
There are also cross-defaults with other debt having a total principal amount of more than $75 million.
Piedmont is a Charlotte, N.C.-based gas distribution company.
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