RGC RESOURCES, INC. (NASDAQ:RGCO) Files An 8-K Entry into a Material Definitive AgreementITEM 1.01.ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On March 26, 2018, Roanoke Gas Company (“Roanoke”), the utility subsidiary of RGC Resources, Inc. (“Resources”), entered into a new Revolving Line of Credit Note in the original principal amount of $25,000,000 (the “Note”) in favor of Wells Fargo Bank, N.A. (“Wells Fargo”). The Note replaces the Revolving Line of Credit Note dated March 27, 2017 in the original principal amount of $30,000,000. The Note expires on March 31, 2020.
The purpose of the Note is to provide working capital financing for Roanoke’s operations and bridge financing for its infrastructure enhancement and replacement projects. The Note provides for a variable interest rate based upon 30-day LIBOR and multiple-tier borrowing limits to accommodate seasonal borrowing demands. The Note provides for borrowing limits that range from $2,000,000 to a maximum of $25,000,000 during the term of the Note.
In connection with the Note, Roanoke also entered into the Second Amendment to Credit Agreement as of March 26, 2018, with Wells Fargo (the "Amendment"), which amends the original Credit Agreement between the parties dated March 31, 2016 and First Amendment to Credit Agreement ("First Amendment"). The Amendment revises the original Credit Agreement and First Amendment by extending the expiration date for advances under the Note to March 31, 2020 and reduces the maximum principal amount available under the Note to $25,000,000. All other terms and requirements of the Amendment are consistent with the original Credit Agreement and First Amendment.
The Continuing Guaranty previously entered into by Resources with Wells Fargo remains in effect.
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ITEM 2.03 |
CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT. |
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 ExhibitEX-10.1 2 ex101revolvinglineofcredit.htm EXHIBIT 10.1 Exhibit Exhibit 10.1REVOLVING LINE OF CREDIT NOTE(VARIABLE MAXIMUM)$25,…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.
