Excelerate Energy and Excelerate Energy Limited Partnership entered into a senior secured revolving credit facility. The facility enables Excelerate to borrow up to $350 million over a three-year term which expires in April 2025.
Borrowings under the credit facility will bear interest at a per annum rate equal to the term SOFR reference rate plus 0.10% (or alternate base rate) for such period plus an applicable margin, which will be based on the borrower’s consolidated total leverage ratio as defined under the facility. The unused portion of the facility will be subject to an unused commitment fee at a rate per annum ranging from 0.375% to 0.50% based on the borrower’s consolidated total leverage ratio.
The facility is expected to be used primarily for letters of credit, working capital and other general corporate purposes. The facility contains customary representations, warranties, covenants (affirmative and negative, including maximum consolidated total leverage ratio and minimum consolidated interest coverage ratio covenants) and events of default, the occurrence of which would permit the lenders to accelerate the maturity date of amounts borrowed under the facility.
“Securing this new $350 million credit facility represents an important milestone for Excelerate Energy as we move forward as a public company,” Steven Kobos, president and CEO of Excelerate, said. “We greatly appreciate the ongoing support from the banks in our lending group.”
JPMorgan Chase Bank is acting as administrative agent for the facility. JPMorgan Chase Bank along with Barclays Bank, Morgan Stanley Senior Funding, Sumitomo Mitsui Banking Corporation and Wells Fargo Securities served as joint lead arrangers and joint bookrunners, with BOKF (dba Bank of Oklahoma) and First Financial Bank as additional lenders.
Gibson, Dunn & Crutcher and Frederic Dorwart, Lawyers served as counsel to Excelerate.
