Alliant Energy Finance, a wholly-owned subsidiary of Alliant Energy, entered into a two-year $300 million term loan credit agreement which matures in April 2020. Advances under the loan will be used for general corporate purposes.
According to a related 8-K filing, U.S. Bank served as administrative agent on the transaction.
The agreement requires Alliant Energy to maintain a debt-to-capital ratio of not greater than 65% on a consolidated basis. The debt component of the debt-to-capital ratio includes, among others, long- and short-term debt, capital lease obligations, certain letters of credit, guarantees of the foregoing and synthetic leases. Unfunded vested benefits under qualified pension plans and sales of accounts receivable are not included in the debt component of the debt-to-capital ratio.
The agreement also requires, during its term, any proceeds from asset sales in excess of 25% of Alliant Energy’s consolidated assets be used to reduce certain debt commitments. Exclusions to the requirement include, among others, certain sale and lease-back transactions, sales of non-regulated assets, inter-company asset sales and sales of certain contracts and accounts receivables.
Alliant Energy has two energy generation and distribution subsidiaries, one in Wisconsin and one in Iowa, along with a portfolio of electric generating facilities operating on a diverse mix of fuels, including coal, natural gas and renewable resources.
