On November 25, 2024, Consolidated Edison Company of New York, Inc. (CECONY), a subsidiary of Consolidated Edison, Inc. (ED, Financial), announced the execution of a $700 million 364-Day Senior Unsecured Delayed Draw Term Loan Credit Agreement. This agreement, dated November 25, 2024, involves CECONY as the borrower, with U.S. Bank National Association serving as the Administrative Agent, and U.S. Bank National Association and PNC Capital Markets LLC acting as Joint Lead Arrangers and Bookrunners.
Under this agreement, CECONY has already borrowed $500 million, which will be utilized for general corporate purposes. The credit agreement allows for additional borrowings up to $200 million, subject to certain conditions, until February 23, 2025. This strategic financial arrangement provides CECONY with the flexibility to prepay any term loans before maturity.
The lenders' commitments are contingent upon specific conditions, including the absence of any default events. Notably, the commitments are not dependent on maintaining specific credit rating levels. However, a change of control of CECONY or its parent company, Consolidated Edison, Inc., or an event of default could lead to the termination of the lenders' commitments and the immediate repayment of outstanding loans.
Events of default include exceeding a consolidated debt to consolidated total capital ratio of 0.65 to 1, having liens on assets exceeding ten percent of CECONY’s consolidated net tangible assets, and failing to make payments on material financial obligations exceeding $150 million. Additionally, any event that accelerates the maturity of material debt or enables holders to accelerate maturity could also constitute an event of default.
This credit agreement underscores CECONY's proactive approach in managing its financial resources to support its operational and strategic objectives.
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