BofA Provides Renewal, Additional Financing for Gas Natural
Gas Natural, a natural gas utility company serving approximately 70,000 customers in seven states, announced that its subsidiary, Energy West, renewed its existing $30 million revolving credit facility and entered into a new $10 million term loan through April 2017 with Bank of America.
The revolving credit facility includes an annual commitment fee ranging from 25 to 45 basis points of the unused portion of the facility and interest on the amounts outstanding at LIBOR plus 175 to 225 basis points.
The term loan includes an interest rate of LIBOR plus 175 to 225 basis points with an interest rate swap provision that allows for the interest rate to be fixed in the future. The term loan also carries an amortization of principal provision of $125,000 per quarter with the first principal payment being due December 31, 2012.
Richard M. Osborne, Gas Natural’s chairman and chief executive officer, commented, “The renewal and additional financing further enhances our flexibility to pursue our growth strategy and is a testament to the strength of our balance sheet.”
Mentor, OH-based Gas Natural distributes and sells natural gas to end-user residential, commercial, and industrial customers.