CFC Leads $200 Million Syndication for Buckeye Power

CFC and Buckeye Power Inc. recently closed an amend and restate (A&R) transaction for a $200 million senior unsecured revolving credit facility. Through the A&R, the Columbus, Ohio-based wholesale power supply cooperative was able to extend the maturity date of the facility from 2024 to 2027. That allows Buckeye Power to update to the most current utility pricing grid and replace LIBOR with SOFR. Buckeye Power will use the financing primarily for its daily and seasonal working capital needs, such as changes in inventory and funding smaller capital projects. 

“We have a continuous dialogue with CFC on our financing needs,” Buckeye Power Vice President of Finance and CFO Bill Roberts said. “During the pandemic, we extended our credit facility but didn’t get the length that we wanted. CFC mentioned the lending terms were back and closer to pre-pandemic levels and, thus, we took the opportunity to extend our credit facility to the period we were accustomed to having and which will benefit our members for years to come.” 

All three existing lenders participated in the transaction along with CFC. 

“CFC knows Buckeye Power, our needs and our attributes,” Roberts said. “They are a cooperative financial institution, and they understand both sides of the equation: generation and transmission and distribution cooperatives as well as financial institutions. The CFC people make a difference, a huge difference. They are smart, knowledgeable, creative and get transactions completed timely. We couldn’t be more pleased.” 

Since 2005, CFC has completed more than $28 billion of syndicated loan transactions for electric cooperatives. It currently serves as an administrative agent for 22 electric cooperatives’ credit facilities. 

Buckeye Power provides wholesale electricity and services to 24 electric distribution cooperatives in Ohio and one in Michigan. Its utility members supply electricity to nearly 400,000 homes and businesses.