CFC Leads $300 Million Syndication for Indiana-Based G&T

CFC and Hoosier Energy Rural Electric Cooperative recently closed an amend and restate (A&R) transaction for a $300 million, five-year unsecured revolving credit facility. Through the A&R, the Bloomington, Indiana-based generation and transmission (G&T) cooperative was able to extend the maturity date of the facility from November 2022 to November 2026 with the existing bank group. The cooperative expects to continue to use the proceeds to support general operations.

CFC has served as the administrative agent for Hoosier’s facility since it was initially arranged in 2016 and led an amend and extend transaction in November 2020.

Short-Term Facility Allowed for More Favorable Pricing in 2021

“We renewed for a shorter-term facility in 2020 with the intention of structuring a longer-term facility when market conditions improved,” Jon Jackson, senior vice president of finance for Hoosier, said. “We received favorable pricing on the 2021 transaction that was near pre-pandemic levels. We were also able to size the facility to meet our liquidity needs with a five-year term.”

In addition to CFC, the three other lenders participating in the facility also agreed to the A&R at new commitment levels.  

“The facility will allow Hoosier to maintain strong liquidity over the term of the commitment, utilize it as bridge funding for capital investments and be available to navigate market opportunities and challenges,” Jackson added. “Considering the changing market dynamics with challenges during the 2020 renewal, CFC was tremendously valuable in arranging the new facility.”

Since 2005, CFC has completed more than $26 billion of transactions in the syndicated loan market.

Hoosier is the 12^th-largest U.S. G&T cooperative and provides wholesale electricity to 18 distribution systems in central and southern Indiana and southeastern Illinois. Its members supply electricity to more than 300,000 homes, farms, businesses and industries.