PGE - Portland General Electric Company
11/15/2024 | Press release | Distributed by Public on 11/15/2024 05:04
Material Agreement Form 8 K
Item 1.01 Entry into a Material Agreement.
On November 14, 2024, Portland General Electric Company ("PGE" or the "Company") entered into an unsecured Credit Agreement (the "Credit Agreement") among the Company, as Borrower, U.S. Bank National Association, as Administrative Agent and Lender, and CoBank, ACB, as Syndication Agent and Lender (collectively, the "Lenders"). The Credit Agreement, which expires on November 17, 2025, has an Aggregate Commitment of $300 million, with any outstanding balance due and payable on such date. Draws under the Aggregate Commitment may be made through the four-month anniversary of the Credit Agreement.
Pursuant to the Credit Agreement, on November 14, 2024, PGE obtained a term loan from the Lenders in the aggregate principal of $220 million. The term loan bears interest for the relevant interest period at the Term Secured Overnight Financing Rate (SOFR) Screen Rate plus the SOFR Adjustment Rate of 10 basis points and Applicable Margin of 80 basis points. The interest rate is subject to adjustment pursuant to the terms of the loan. The term loan is prepayable, in whole or in part, without penalty, at any time. The Company expects to use a portion of the proceeds of the term loan to repay in full an existing $80 million First Mortgage Bond that matures on November 15, 2024 and pay certain administrative expenses related to the transaction, with the remainder of the proceeds available for general corporate purposes. The term loan will be classified as long-term debt on PGE's consolidated balance sheet.
The foregoing description of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Credit Agreement filed herewith as Exhibit 10.1 and incorporated herein by reference.