CFC Leads $65 Million Syndication for SIPC

CFC and Southern Illinois Power Cooperative (SIPC) recently closed an amend and restate (A&R) transaction for a $65 million, five-year unsecured syndicated revolving credit facility. Through the A&R, the Marion, Illinois-based generation and transmission (G&T) cooperative was able to extend the maturity date of the facility from April 2023 to June 2027, replace the LIBOR-based terms with Secured Overnight Financing Rate (SOFR)-based terms and amend and update the pricing grid. 

CFC has served as lead arranger and administrative agent for SIPC’s facility since it was initially arranged in 2012 and has led several additional amendment transactions over the years.

“Our existing line of credit facility was expiring and we historically replace facilities up to a year before expiration,” SIPC Vice President of Administration & Finance Paul Furtak said. “The facility is an integral part of our available capital for investments, operations and inventory needs. Completing it now enables uninterrupted operations and financial predictability.”

In addition to CFC, the other original lender also participated in the transaction. 

“From day one, the CFC team has been supportive and professional,” Furtak said. “They helped us analyze our facility needs and select the best product to meet those needs. CFC has the contacts, resources and they have the ability to quickly meet our financing needs at very competitive pricing. We couldn’t be happier with the support we received from the CFC team and the structure of our line of credit facility.”