Northwest Natural units get two term loans totaling $150 million

By Wendy Van Sickle

Columbus, Ohio, Sept. 21 – Northwest Natural Holding Co. subsidiary Northwest Natural Gas Co. entered into a $100 million term loan credit agreement, and Natural Water Co., LLC entered into a $50 million term loan credit agreement on Sept. 15, according to an 8-K filing with the Securities and Exchange Commission.

U.S. Bank, NA is the bookrunner, lead arranger and administrative agent for each credit agreement.

The maturity date is March 15, 2024 for each term loan.

Borrowings under each loan bear interest at term SOFR plus a credit spread adjustment of 10 basis points plus 75 bps.

The credit agreements require Northwest Natural Gas to maintain credit ratings with Standard & Poor’s and Moody’s Investors Service, which it does not currently do, and to notify the administrative agent of any change in the ratings.

The term loan also requires Northwest Natural Gas and Natural Water to maintain a consolidated debt to total capitalization ratio of 70% or less. The companies were in compliance with this ratio at closing.

Proceeds of each term loan will be used for general corporate purposes.

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