Portland General closes $650 million restated credit facility due 2026

By Marisa Wong

Los Angeles, Sept. 14 – Portland General Electric Co. (PGE) entered into a $650 million unsecured second amended and restated credit agreement on Sept. 10 with Wells Fargo Bank, NA as administrative agent and Wells Fargo Securities, LLC as sustainability agent, according to an 8-K filing with the Securities and Exchange Commission.

The restated credit facility extends the scheduled termination date of the existing credit facility to September 2026 and increases the aggregate principal amount to $650 million from $500 million.

The amended credit facility retains the accordion feature, which allows the company to increase its maximum borrowing limit by $100 million.

The credit facility also provides for the issuance of letters of credit subject to an aggregate sublimit of $150 million and swingline loans subject to an aggregate sublimit of $40 million.

The company may borrow for one, three or six months at a fixed interest rate established at the time of the borrowing or at a variable interest rate. The credit facility contains provisions for interest rate margin and fees pricing adjustments in the event of a change in PGE’s long-term debt securities credit ratings.

The applicable margin for Eurodollar borrowings ranges from 87.5 basis points to 150 bps. The commitment fee ranges from 7.5 bps to 22.5 bps.

In addition, the credit facility offers the potential for adjustments to interest rate margins and fees based on PGE’s achievement of some annual sustainability-linked metrics related to its non-emitting generation capacity and the percentage of management comprised of women and employees who identify as black, indigenous and people of color.

The facility also includes provisions addressing the anticipated transition from Libor to an alternative benchmark rate.

The facility contains customary covenants, including a covenant that prohibits the company from permitting the aggregate outstanding principal amount of all consolidated indebtedness to exceed 65% of its total capitalization as of the end of any fiscal quarter.

The company may use loan proceeds for general corporate purposes, including to provide liquidity, support commercial paper, refinance existing debt and support collateral requirements under its energy purchase and sale agreements.

Wells Fargo Securities, BofA Securities, Barclays Bank plc, JPMorgan Chase Bank, NA and U.S. Bank NA are joint lead arrangers and joint bookrunners.

Bank of America, NA, Barclays, JPMorgan and U.S. Bank are co-syndication agents.

The public utility is based in Portland, Ore.

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