On December 23, 2019, RGC Midstream, LLC (\”Midstream\”), a wholly-owned subsidiary of RGC Resources, Inc. (\”Resources\”), entered into the Third Amendment to Credit Agreement (the \”Amendment\”) and amendments to the related Promissory Notes (the \”Notes\”) with Atlantic Union Bank and Truist Bank (collectively the \”Banks\”). The Amendment modifies the original Credit Agreement and prior amendments between Midstream and the Banks by increasing the total borrowing capacity to $41,000,000 from its current limit of $26,000,000 and extends the maturity date to December 29, 2022. The Amendment retained all of the other provisions contained in the prior amendments including the interest rate on the Notes based on 30-day LIBOR plus 1.35%.

The proceeds from the increased borrowing capacity will be used to provide the ongoing financing for Midstream\’s investment in the Mountain Valley Pipeline, LLC.

The Guaranty previously entered into by Resources in favor of the Banks remains in effect as well as all previous representations, warranties and covenants.

The information required by this Item 2.03 is set forth in Item 1.01 above in respect of the Note, which is incorporated herein by reference.

ITEM 9.01. FINANCIAL STATEMENT AND EXHIBITS.

(d) Exhibits.

RGC RESOURCES INC Exhibit
EX-10.1 2 exhibit101thirdamendmentto.htm EXHIBIT 10.1 Exhibit THIRD AMENDMENT TO CREDIT AGREEMENTTHIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of December 23,…
To view the full exhibit click here

About RGC RESOURCES, INC. (NASDAQ:RGCO)

RGC Resources, Inc. (Resources) is an energy services company. The Company is engaged in the regulated sale and distribution of natural gas to residential, commercial and industrial customers in Roanoke, Virginia, and the surrounding localities, through its Roanoke Gas Company (Roanoke Gas) subsidiary. Roanoke Gas also provides certain non-regulated services. It maintains an integrated natural gas distribution system to deliver natural gas purchased from suppliers to residential, commercial and industrial users in its service territory. As of September 30, 2016, Resources had approximately 1,132 miles of transmission and distribution pipeline. As of September 30, 2016, Roanoke Gas owned and operated eight metering stations. It also owns a liquefied natural gas storage facility located in Botetourt County that has the capacity to store up to 220,000 dekatherm (DTH) of natural gas. The Company’s subsidiaries also include Diversified Energy Company and RGC Midstream, LLC.