RGC RESOURCES, INC. (NASDAQ:RGCO) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
subsidiary of RGC Resources, Inc. (Resources), entered into a new
Revolving Line of Credit Note in the original principal amount of
$30,000,000 (the Note) in favor of Wells Fargo Bank, N.A. (Wells
Fargo). The Note replaces the Revolving Line of Credit Note dated
March 31, 2016 in the original principal amount of $24,000,000.
The Note expires on March 31, 2019.
for Roanokes operations and bridge financing for its
infrastructure replacement program. 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 $10,000,000 to
a maximum of $30,000,000 during the term of the Note.
Amendment to Credit Agreement as of March 27, 2017, with Wells
Fargo (the “Amendment”), which amends the original Credit
Agreement between the parties dated March 31, 2016. The Amendment
revises the original Credit Agreement by extending the expiration
date for advances under the Note to March 31, 2019 and increases
the maximum principal amount available under the Note to
$30,000,000. The Amendment also adds an additional financial
covenant requirement that limits the Long Term Debt to Long Term
Capitalization Ratio to not more than 0.65 to 1.00. This
financial covenant applies both to Roanoke and Resources.
Wells Fargo remains in effect.
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ITEM 2.03
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CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION
UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT. |
1.01 above in respect of the Note, which is incorporated herein
by reference.
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10.1
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Revolving Line of Credit Note in the original principal
amount of $30,000,000 by Roanoke Gas Company in favor of Wells Fargo Bank, N.A. dated as of March 27, 2017. |
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10.2
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First Amendment to Credit Agreement by and between Roanoke
Gas Company and Wells Fargo Bank, N.A. dated as of March 27, 2017. |
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. RGC RESOURCES, INC. (NASDAQ:RGCO) Recent Trading Information
RGC RESOURCES, INC. (NASDAQ:RGCO) closed its last trading session up +0.17 at 21.06 with 7,053 shares trading hands.