ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On August 20, 2021, Roanoke Gas Company ('Roanoke'), the utility subsidiary of RGC Resources, Inc. ('Resources'), entered into an unsecured Delayed Draw Term Note in the principal amount of $15,000,000 (the 'Note') with Wells Fargo Bank, N.A. ('Wells Fargo'). Roanoke can draw the funds at any time through October 1, 2021.
The proceeds from this note will be used to finance Roanoke's infrastructure enhancement and replacement projects, as well as to refinance a portion of Roanoke's existing debt. The Note has an interest rate of 1.20% above 30-day SOFR Average per annum with interest paid monthly. The outstanding principal balance of the Note is due on August 20, 2026.
Also, on August 20, 2021, Roanoke executed an interest rate swap agreement for $15,000,000 corresponding to the term of the Note, which effectively converts the variable rate note to a fixed rate instrument with an effective annual interest rate of 2.00%.
In connection with the Note, Roanoke also entered into the Sixth Amendment to Credit Agreement as of August 20, 2021, with Wells Fargo (the 'Amendment'), which amends the original Credit Agreement between the parties dated March 31, 2016 and all subsequent amendments. The Amendment aligns the termination date and the maximum principal amount available under the Note and retains all other terms and requirements of prior credit agreements.
The Continuing Guaranty previously entered into by Resources with Wells Fargo remains in effect.
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.
FINANCIAL STATEMENT AND EXHIBITS
(d) Exhibits.
10.1
Delayed Draw Term Note in the principal amount of $15,000,000 by Roanoke Gas Company with Wells Fargo Bank, N.A. dated as of August 20, 2021
10.2
Sixth Amendment to Credit Agreement by and between Roanoke Gas Company and Wells Fargo Bank, N.A., including Guarantor's Consent and Reaffirmation, dated as of August 20, 2021
10.3 Swap Agreement by and between Roanoke Gas Company and Wells Fargo Bank, N.A., executed on August 20, 2021
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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RGC Resources Inc. published this content on 26 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2021 07:51:21 UTC.