RGC Resources Secures $50M Credit Facility

TL;DR

RGC just locked in a $50M credit line with Bank of America.

AI Summary

On March 6, 2024, RGC Resources, Inc. entered into a material definitive agreement, specifically a Credit Agreement with Bank of America, N.A. This agreement establishes a $50 million revolving credit facility, which constitutes a direct financial obligation for the company.

Why It Matters

This new credit facility provides RGC Resources with significant financial flexibility and access to capital, which can be used for operational needs, investments, or managing financial obligations.

Risk Assessment

Risk Level: low — The filing details a standard credit agreement, which is a common and generally low-risk financial activity for a company.

Key Numbers

• $50 million — Credit Facility (Amount available under the new revolving credit agreement with Bank of America.)

Key Players & Entities

• RGC Resources, Inc. (company) — Registrant
• Bank of America, N.A. (company) — Lender
• $50 million (dollar_amount) — Revolving credit facility amount
• March 6, 2024 (date) — Date of Credit Agreement

FAQ

Key Financial Figures

• $5 — ge on Which Registered Common Stock , $5 Par Value RGCO NASDAQ Global Market
• $23 million — ank by increasing the availability from $23 million to $25 million and extending the maturi
• $25 million — ng the availability from $23 million to $25 million and extending the maturity date to Dece
• $8,000,000 — ") with an original principal amount of $8,000,000 dated November 1, 2021, as amended. Und
• $400,000 — pril 1, 2025, at which time payments of $400,000 will commence and be due each April 1,

Filing Documents

• rgco20240306_8k.htm (8-K) — 31KB
• ex_635574.htm (EX-10.1) — 42KB
• ex_636043.htm (EX-10.2) — 17KB
• 0001437749-24-006939.txt ( ) — 230KB
• rgco-20240306.xsd (EX-101.SCH) — 3KB
• rgco-20240306_def.xml (EX-101.DEF) — 11KB
• rgco-20240306_lab.xml (EX-101.LAB) — 15KB
• rgco-20240306_pre.xml (EX-101.PRE) — 11KB
• rgco20240306_8k_htm.xml (XML) — 3KB

01

ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT On March 6, 2024, RGC Midstream, LLC ("Midstream"), a wholly owned subsidiary of RGC Resources, Inc. ("Resources"), entered into the Sixth Amendment to Credit Agreement (the "Amendment") with Atlantic Union Bank (the "Bank"). As part of the Amendment, Truist Bank, a Lender under the original Credit Agreement and prior amendments, assigned their outstanding portion to the Bank. Additionally, the Amendment modifies the original Credit Agreement and prior amendments between Midstream and the Bank by increasing the availability from $23 million to $25 million and extending the maturity date to December 31, 2025. The interest rate currently remains unchanged at Term SOFR plus 2.00%, however, the Amendment allows for a reduction in the interest rate to Term SOFR plus 1.75% upon operation of the Mountain Valley Pipeline ("MVP") and a further reduction to Term SOFR plus 1.55% once distributions from MVP have commenced. All other terms and requirements of the Credit Agreement were retained. Also, on March 6, 2024, Midstream entered into a Note Modification Agreement (the "Agreement") with the Bank related to the unsecured Promissory Note (the "Note") with an original principal amount of $8,000,000 dated November 1, 2021, as amended. Under the Agreement, principal payments have been halted until April 1, 2025, at which time payments of $400,000 will commence and be due each April 1, July 1, October 1 and January 1. All other terms and requirements of the Note, including maturity on January 1, 2028 and interest rate at Daily Simple SOFR plus 126.448 basis points, were retained. The Guaranty previously entered into by Resources in favor of the Bank remains in effect, as well as all previous representations, warranties and covenants.

03

ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT The information required by this Item 2.03 is set forth in Item 1.01 above in respect of the Note, which is incorporated herein by reference.

FINANCIAL STATEMENTS AND EXHIBITS

FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits 10.1 Sixth Amendment to Credit Agreement between RGC Midstream, LLC and Atlantic Union Bank, dated March 6, 2024. 10.2 Note Modification Agreement between RGC Midstream, LLC and Atlantic Union Bank, dated March 6, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RGC RESOURCES, INC. Date: March 7, 2024 By: /s/ Timothy J. Mulvaney Timothy J. Mulvaney Vice President, Treasurer and Chief Financial Officer (Principal Financial Officer)

View Full Filing

View this 8-K filing on SEC EDGAR