Document:

ex_277768.htm

Exhibit 10.2

 

SIXTH AMENDMENT TO CREDIT AGREEMENT

 

 

THIS AMENDMENT TO CREDIT AGREEMENT (this "Amendment") dated August 20, 2021, is entered into by and between ROANOKE GAS COMPANY, a Virginia corporation ("Borrower"), and WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank").

 

RECITALS

 

WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated March 31, 2016, as amended from time to time ("Credit Agreement").

 

WHEREAS, Bank and Borrower have agreed to certain changes in the terms and conditions set forth in the Credit Agreement and have agreed to amend the Credit Agreement to reflect said changes.

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Credit Agreement shall be amended as follows:

 

1.         The following is hereby added to the Credit Agreement as Section 1.1.1.:

 

"SECTION 1.1.1.         TERM LOAN.

 

(a)         Term Loan. Subject to the terms and conditions of this Agreement, Bank hereby agrees to make a delayed draw term loan to Borrower in the principal amount of Fifteen Million Dollars ($15,000,000.00) ("Term Loan"), the proceeds of which shall be used to refinance and consolidate certain of Borrower’s existing indebtedness, including amounts outstanding under the Line of Credit. Borrower's obligation to repay the Term Loan shall be evidenced by a promissory note dated August 20, 2021, as modified from time to time ("Term Note"). Borrower may request one advance under the Term Loan in accordance with the provisions of the Term Note. Bank's commitment to make the advance under the Term Loan shall terminate on October 1, 2021.

 

(b)         Repayment. Principal and interest on the Term Loan shall be repaid in accordance with the provisions of the Term Note.

 

(c)         Prepayment. Borrower may prepay principal on the Term Loan solely in accordance with the provisions of the Term Note."

 

2.         The effective date of this Amendment shall be the date that all of the following conditions set forth in this Section have been satisfied, as determined by Bank and evidenced by Bank’s system of record. Notwithstanding the occurrence of the effective date of this Amendment, Bank shall not be obligated to extend credit under this Amendment or any other Loan Document until all conditions to each extension of credit set forth in the Credit Agreement have been fulfilled to Bank's satisfaction.

 

(a)         Approval of Bank Counsel. All legal matters incidental to the effectiveness of this Amendment shall be satisfactory to Bank's counsel.

 

(b)         Documentation. Bank shall have received, in form and substance satisfactory to Bank, each of the following, duly executed by all parties:

 

	 	
			(i)

				
			This Amendment and each promissory note or other instrument or document required hereby.

			

	 	
			(ii)

				
			Corporate Resolution and Certificate of Incumbency: Third Party.

			

	 	
			(iii)

				
			Corporate Resolution and Certificate of Incumbency: Borrower.

			

	 	
			(iv)

				
			Such other documents as Bank may require under any other Section of this Amendment.

			

 

(c)         Regulatory and Compliance Requirements. All regulatory and compliance requirements, standards and processes shall be completed to the satisfaction of Bank.

 

3.         Except as specifically provided herein, all terms and conditions of the Credit Agreement remain in full force and effect, without waiver or modification. All terms defined in the Credit Agreement shall have the same meaning when used in this Amendment. This Amendment and the Credit Agreement shall be read together, as one document.

 

4.         Borrower hereby remakes all representations and warranties contained in the Credit Agreement and reaffirms all covenants set forth therein. Borrower further certifies that as of the date of this Amendment and as of the date of Borrower’s execution of this Amendment there exists no Event of Default as defined in the Credit Agreement, nor any condition, act or event which with the giving of notice or the passage of time or both would constitute any such Event of Default.

 

5.         Borrower hereby covenants that Borrower shall provide to Bank from time to time such other information as Bank may request for the purpose of enabling Bank to fulfill its regulatory and compliance requirements, standards and processes. Borrower hereby represents and warrants to Bank that all information provided from time to time by Borrower or any Third Party Obligor to Bank for the purpose of enabling Bank to fulfill its regulatory and compliance requirements, standards and processes was complete and correct at the time such information was provided and, except as specifically identified to Bank in a subsequent writing, remains complete and correct today, and shall be complete and correct at each time Borrower is required to reaffirm the representations and warranties set forth in the Credit Agreement.

 

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this Amendment to be effective as of the effective date set forth above.

 

 

WELLS FARGO BANK,  NATIONAL ASSOCIATION

       

 

By:  /s/ Matthew S. Churchill

MATTHEW S. CHURCHILL,

SENIOR VICE PRESIDENT

 

 

ROANOKE GAS COMPANY     

    

By:  /s/ Paul W. Nester       

PAUL W. NESTER,  PRESIDENT,

CHIEF EXECUTIVE OFFICER        

 

 

By:  /s/ Lawrence T. Oliver 

LAWRENCE T. OLIVER, VICE PRESIDENT,

INTERIM CHIEF FINANCIAL OFFICER, TREASURER,

CORPORATE SECRETARY

 

 

GUARANTOR'S CONSENT AND REAFFIRMATION

 

 

The undersigned guarantor of all indebtedness of ROANOKE GAS COMPANY to WELLS FARGO BANK, NATIONAL ASSOCIATION hereby: (i) consents to the foregoing Amendment; (ii) reaffirms its obligations under its Continuing Guaranty; (iii) reaffirms its waivers of each and every one of the defenses to such obligations as set forth in its Continuing Guaranty; and (iv) reaffirms that its obligations under its Continuing Guaranty are separate and distinct from the obligations of any other party under said Amendment and the other Loan Documents described therein.

 

 

GUARANTOR:

 

RGC RESOURCES, INC.

 

By: /s/ Paul W. Nester

PAUL W. NESTER, PRESIDENT,

CHIEF EXECUTIVE OFFICER

 

 

By: /s/ Lawrence T. Oliver 

LAWRENCE T. OLIVER, VICE PRESIDENT

INTERIM CHIEF FINANCIAL OFFICER, TREASURER,

CORPORATE SECRETARYex_277769.htm

Exhibit 10.3

 

 

CONFIRMATION OF SWAP TRANSACTION

 

	To:	 	Roanoke Gas Company (“Counterparty”)
	 	 	 
	Legal Entity Identifier (LEI):	 	549300GO68EPQLQ7MK06
	 	 	 
	Attention:	 	Paul W. Nester & Tommy Oliver
	 	 	 
	Email:	 	Paul_Nester@RGCResources.com; Tommy_Oliver@RGCResources.com
	 	 	 
	From:	 	Wells Fargo Bank, N.A. (“Wells Fargo”)
	 	 	 
	Legal Entity Identifier (LEI):	 	KB1H1DSPRFMYMCUFXT09
	 	 	 
	Phone:	 	704-410-5111
	 	 	 
	Fax:	 	1-844-879-8056
	 	 	 
	Email:	 	inboundconfirms1@wellsfargo.com
	 	 	 
	Wells Fargo Ref. No.:	 	43709695-1.5
	 	 	 
	Unique Swap Identifier (USI):	 	103039933701W00000000000000000000043709695
	 	 	 
	Swap Data Repository:	 	DTCC Data Repository, LLC
	 	 	 
	Date:	 	August 24, 2021

 

 

Dear Sir or Madam:

 

This confirms the terms and conditions of the Transaction described below entered into between Counterparty and Wells Fargo on the Trade Date specified below (the “Transaction”) and constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.

 

This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement between Wells Fargo and Counterparty dated as of August 12, 2021, as amended and supplemented from time to time (the "ISDA Master Agreement"). All provisions contained or incorporated by reference in the ISDA Master Agreement will govern this Confirmation except as expressly modified herein.

 

 

		Wells Fargo Ref. No.: 43709695-1.5	 

 

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The definitions and provisions contained in the 2006 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern. Fixed Amounts and Floating Amounts for each applicable Payment Date hereunder will be calculated in accordance with the ISDA Definitions, and if any Fixed Amount and Floating Amount are due for the same Payment Date hereunder, then those amounts shall not be payable and instead the Fixed Rate Payer shall pay the positive difference, if any, between the Fixed Amount and the Floating Amount, and the Floating Rate Payer shall pay the positive difference, if any, between the Floating Amount and the Fixed Amount.

 

1.    The terms of the particular Transaction to which the Confirmation relates are as follows:

 

	Transaction Type:	 	Interest Rate Swap
	Currency for Payments:	 	U.S. Dollars
	Notional Amount:	 	USD 15,000,000.00
	 	 	 
	Term:	 	 
	Trade Date: 	 	August 20, 2021
	Effective Date: 	 	October 01, 2021. The Effective Date is the first day of the first Calculation Period. However, the rights and obligations of both parties under this Transaction are in effect as of the Trade Date.
	Termination Date: 	 	August 20, 2026, subject to adjustment in accordance with the Modified Following Business Day Convention.
	 	 	Counterparty hereby acknowledges that the payments due by it under this Transaction shall be due on their respective due dates whether or not (i) there exists at any time a commitment for any Financing or any such commitment expires or terminates, (ii) any closing of any Financing takes place or is postponed or delayed, (iii) any advance is made, outstanding or repaid in connection with any Financing, either before, on or after the Effective Date, (iv) circumstances change such that Counterparty ceases to have any need for, or is unable to obtain, any Financing; or (v) the principal amount of any Financing is less or more than the Notional Amount of this Transaction, the term of any Financing is shorter or longer than the Term of this Transaction, or any other terms of any Financing differ from the terms of this Transaction. "Financing" means any loan or other extension of credit from Wells Fargo (or any other entity) to Counterparty (or any other entity). In addition, Counterparty acknowledges that its obligations in respect of this Transaction upon the occurrence of any Event of Default, Termination Event or Additional Termination Event shall be due and payable by Counterparty whether any such event occurs before, on or after the Effective Date.
	Fixed Amounts:	 	 
	Fixed Rate Payer: 	 	Counterparty
	Fixed Rate Payer Period End Dates:	 	Monthly on the 1st of each month commencing November 01, 2021, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
	Fixed Rate Payer Payment Dates:	 	Monthly on the 1st of each month commencing November 01, 2021, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
	Business Day Convention:	 	Modified Following
	Business Day: 	 	New York Fed
	Fixed Rate:	 	2.00%
	Fixed Rate Day Count Fraction:	 	Actual/360

 

 

		Wells Fargo Ref. No.: 43709695-1.5	 

 

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	Floating Amounts:	 	 
	Floating Rate Payer:	 	Wells Fargo
	Floating Rate Payer Period End Dates:	 	Monthly on the 1st of each month commencing November 01, 2021, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
	Floating Rate Payer Payment Dates:	 	Monthly on the 1st of each month commencing November 01, 2021, through and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
	Business Day Convention:	 	Modified Following
	Business Day:	 	New York Fed
	
			Floating Rate for initial Calculation Period: 

				 	Determined two U.S. Government Securities Business Days prior to the Effective Date.
	Floating Rate Option:	 	
			For a Reset Date, the rate will be “30-Day Average SOFR”, as published by the Federal Reserve Bank of New York (“30-Day Average SOFR”), currently on the New York Fed’s website at http://www.newyorkfed.org (or any successor source for the secured overnight financing rate identified as such by Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate from time to time)) (the “SOFR Administrator’s Website”) on such Reset Date, for the Floating Rate Determination Day.

			 

			If, on the Reset Date, 30-Day Average SOFR for the Floating Rate Determination Day has not been published and a 30DAS ICE has not occurred, then 30-Day Average SOFR for that Reset Date will be 30-Day Average SOFR as published for the first U.S. Government Securities Business Day preceding the Floating Rate Determination Day for which 30-Day Average SOFR was published on the SOFR Administrator’s Website.

			 

			Upon the occurrence of an Index Cessation Event, the rate for the relevant Reset Date on or after the Index Cessation Effective Date will be determined in accordance with any provisions for determining the rate for the relevant Reset Date on or after an Index Cessation Effective Date applicable to the Floating Rate Option for the 30-Day Average SOFR as published or to be published by ISDA as a supplement to the 2006 ISDA Definitions (or such successor definitions as may be published by ISDA from time to time) (such an Index Cessation Event, a “30DAS ICE”). If, upon the occurrence of a 30DAS ICE, ISDA has not published a Rate Option for 30-Day Average SOFR, the Calculation Agent will determine an appropriate index as a substitute for 30-Day Average SOFR on the relevant Reset Date on or after the Index Cessation Effective Date applicable to a 30DAS ICE.

			
	Spread:	 	Plus 1.20%
	Floating Rate Day Count Fraction: 	 	Actual/360
	Floating Rate Determination Day:	 	Two U.S. Government Securities Business Days prior to the relevant Reset Date.
	Reset Dates: 	 	The first day of each Calculation Period.
	Compounding:	 	Not applicable
	Rounding Convention:	 	5 decimal places per the ISDA Definitions.

 

 

		Wells Fargo Ref. No.: 43709695-1.5	 

 

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2.   The additional provisions of this Confirmation are as follows:

 

	Calculation Agent: 	 	Per the ISDA Master Agreement, or if not specified, Wells Fargo
	 	 	 
	Payment Instructions: 	 	
			Wells Fargo: Please contact us for payment instructions

			 

			Counterparty: Per your standing payment instructions or debit authorization if provided to Wells Fargo, as relevant. If not provided, please contact us in order for payment to be made.

			
	 	 	 
	Wells Fargo Contacts: 	 	
			Settlement and/or Rate Resets:

			Phone: 1-800-249-3865

			Fax: 704-410-8511

			 

			Collateral:

			Phone: 704-410-9218

			Fax: 704-410-8515

			Email: WellsFargoCollateralManagement@wellsfargo.com

			 

			Please quote transaction reference number.

			

 

Eligibility:

 

Each party represents that it is an “eligible contract participant” within the meaning of the Commodity Exchange Act (7 U.S.C. § 1 et seq), as amended by the Dodd Frank Wall Street Reform and Consumer Protection Act and as modified by 17 C.F.R. § 1.3. The ISDA Non-ECP Guarantor Exclusionary Terms available here: https://www.isda.org/a/OviDE/27666729-2-isdanon- ecpexclusionaryterms.pdf (“Exclusionary Terms”) are incorporated by reference in this Confirmation and apply to the entry into this Transaction by the parties within the meaning of §2(e) of the Commodity Exchange Act. For the avoidance of doubt, the Exclusionary Terms will not apply, in respect of any guarantor, to any unwind, termination, transfer or other disposition of this Transaction, whether in whole or in part, to the extent this Transaction is lawfully guaranteed by such guarantor, whether or not such guarantor is an ECP (as defined in the Exclusionary Terms) when such unwind, termination, transfer or other disposition is agreed or effected.

 

 

		Wells Fargo Ref. No.: 43709695-1.5	 

 

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Please confirm that the foregoing correctly sets forth the terms of our agreement by having your authorized signatory execute a copy of this Confirmation and returning it to us.

 

	 	Very truly yours,
	 	Wells Fargo Bank, N.A.
	 	 
	 	 
	 	By:	/s/ Mark Silke 	 
	 	Name:	Mark Silke
	 	Title:	Authorized Signatory

 

 

Accepted and confirmed as of date first written above:

Roanoke Gas Company

 

By:  /s/ Lawrence T. Oliver         

Name: Lawrence T. Oliver

Title: Vice President, Interim CFO, Corporate Secretary and Treasurer

 

 

 

 

		Wells Fargo Ref. No.: 43709695-1.5	 

 

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