Chesapeake Utilities Corporation Secures $20 Million Revolving Line of Credit

Strategic Insights -

Chesapeake Utilities Corporation has entered into a Loan Agreement with Royal Bank of Canada, providing for a revolving line of credit of up to $20 million. The agreement, which includes a revolving line of credit and specific business and financial covenants, is intended to provide incremental liquidity in the current economic environment. Chesapeake Utilities paid an upfront fee of $30,000 and will pay an unused commitment fee of 35 basis points on a monthly basis.

Key Takeaways:

  • Chesapeake Utilities Corporation has entered into a Loan Agreement with Royal Bank of Canada, providing for a revolving line of credit of up to $20 million.
  • The Loan Agreement includes a revolving line of credit and specific business and financial covenants to which Chesapeake Utilities is subject.
  • Chesapeake Utilities paid an upfront fee of $30,000 and will pay an unused commitment fee of 35 basis points on a monthly basis.
  • The revolving line of credit terminates on October 31, 2020.
  • Borrowings under the Loan Agreement will bear interest at a rate equal to the daily LIBOR rate plus 175 basis points (1.75%).
  • Chesapeake Utilities has availability capacity under its existing bilateral facilities aggregating $290 million and its syndicated revolving credit facility representing $150 million.
  • The company does not expect to draw under the Loan Agreement at the present time.

Statistics:

  • $20 million: The maximum principal amount of the revolving line of credit.
  • 15 basis points (0.15%): The upfront fee paid to Royal Bank of Canada.
  • $30,000: The upfront fee paid to Royal Bank of Canada in dollars.
  • 35 basis points (0.35%): The unused commitment fee paid by Chesapeake Utilities.
  • October 31, 2020: The termination date of the revolving line of credit.
  • 360-day year: The basis on which the unused commitment fee is calculated.
  • 175 basis points (1.75%): The interest rate for borrowings under the Loan Agreement.

Sources:

  • CHESAPEAKE UTILITIES CORP (734-6799 false 0000019745 0000019745 2020-05-06 2020-05-06 Date of Report (Date of Earliest Event Reported)).
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