Item 2.03 Creation of a Direct Financial Obligation under an Off-Balance Sheet Arrangement of a Registrant
OnSeptember 16, 2022 ,PPL Electric Utilities Corporation ("PPL Electric "), entered into a$250 million term loan credit agreement, withU.S. Bank National Association , as Administrative Agent, and the other Lenders party thereto (the "Credit Agreement"). The Credit Agreement is filed as Exhibit 10.1 to this Report. OnSeptember 16, 2022 ,PPL Electric borrowed the full principal amount of$250 million under the Credit Agreement. All principal and unpaid interest under the term loan is due and payable onMarch 16, 2024 . The term loan will, at the option ofPPL Electric and except as otherwise provided in the Credit Agreement, be incurred and maintained as a loan that bears interest at a fluctuating per annum rate of interest based on the applicable secured overnight financing rate ("SOFR"), the lender's prime rate or the federal funds rate as provided in the Credit Agreement.PPL Electric may prepay the principal and interest on the term loan and amounts prepaid may not be reborrowed. The Credit Agreement contains customary representations, covenants and events of default. Under the Credit Agreement,PPL Electric is required to maintain a Consolidated Debt to total Consolidated Capitalization ratio (as defined in the Credit Agreement) not to exceed 70 percent. Failure to comply with this covenant is an event of default.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits 10.1 -$250,000,000 Term Loan Credit Agreement
dated as of
Electric Utilities Corporation , as
Borrower, the Lenders from time to time party
hereto andU.S. Bank National
Association, as Administrative Agent.
104 - Cover Page Interactive Data File
(embedded within the Inline XBRL document).
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