Via Renewables details $195 million three-year senior secured revolver

By Marisa Wong

Los Angeles, July 7 – Via Renewables, Inc., Spark Holdco, LLC and some subsidiaries entered into a credit agreement on June 30 for a $195 million senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Woodforest National Bank is administrative agent, swing bank, swap bank, issuing bank, joint lead arranger, bookrunner and syndication agent, and BOKF, NA (d/b/a/ Bank of Texas) is joint lead arranger and issuing bank.

The credit facility includes a $55 million accordion, according to a prior press release.

The credit facility expires on June 30, 2025.

According to the 8-K, borrowings bear interest at term SOFR plus an applicable margin of 325 basis points to 450 bps, depending on the type of borrowing and the average outstanding amount of loans and letters of credit.

The borrowers are required to pay a non-utilization fee of 50 bps quarterly in arrears on the unused portion of the revolver.

The credit agreement contains covenants including maintenance of a minimum fixed-charge coverage ratio of not less than 1.10 to 1.00, maximum total leverage ratio of no more than 2.50 to 1.00 and maximum senior secured leverage ratio of no more than 2.00 to 1.00.

At closing, Via Renewables terminated its prior credit agreement dated May 19, 2017 with Cooperatieve Rabobank UA, New York Branch as administrative agent.

Via Renewables is a Houston-based independent retail energy services company.

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