Co-op News July 26, 2021

CFC Leads $400 Million Syndication for Indiana-Based G&T

CFC and Wabash Valley Power Association (WVPA) recently closed an amend and restate (A&R) transaction for a $400 million, five-year unsecured revolving credit facility. Through the A&R, the Indianapolis, Indiana-based generation and transmission (G&T) cooperative was able to refinance the facility for five years with the existing bank group by extending the maturity date to July 2026. The cooperative expects to continue to use the proceeds to support general operations.

CFC initially arranged an existing facility in 2013, which was WVPA’s first syndicated credit facility. (See “CFC Arranges $100 Million Syndication for Wabash Valley Power,” CFC Solutions News Bulletin, June 24, 2013.) CFC has served as an administrative agent for the facility since 2013 and led three amend and extend transactions for WVPA.

Time was Right to Amend and Restate

“The process this time was a bit more complicated as we felt it was the right time to amend and restate—combining the original agreement and all three amendments into a single, new agreement,” WVPA Chief Financial Officer Theresa Young said. “We relied on CFC to guide us through the process, from setting a reasonable schedule, to providing first drafts of revised documents, to coordinating with our bank group on changes and comments. As always, CFC delivered on their promises and the transaction was closed on time.”

In addition to CFC, the four other lenders participating in the facility also agreed to the A&R at their existing commitment amounts.  

Credit Facility Provides WVPA Liquidity and Quick Access to Capital

“This credit facility is one of the cornerstones of our financial strength,” Young explained. “It not only provides us the liquidity we need to manage any day-to-day cash needs that may arise, but more importantly, provides access to quick capital to meet any unexpected, longer-term needs.”

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

WVPA is the 17th largest U.S. G&T cooperative and provides wholesale electricity to 23 distribution systems in Illinois, Indiana and Missouri. Its members supply electricity to more than 321,000 homes, farms, businesses and industries.