This combined Current Report on Form8-K is provided by the following registrants: Evergy, Inc. (“Evergy”), Westar Energy, Inc. (“Westar”) and Kansas City Power & Light Company (“KCP&L”). Information relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other registrants.
Item 1.01. Entry into a Material Definitive Agreement.
On September 18, 2018, Evergy, Westar, KCP&L and KCP&L Greater Missouri Operations Company, a subsidiary of Evergy (“GMO” and together with Evergy, Westar and KCP&L, the “Borrowers”) entered into a master revolving credit facility with a syndicate of banks (the “Credit Facility”) that provides for maximum borrowings of up to $2.5 billion in the aggregate, including the issuance of letters of credit and swingline loans each up to maximum aggregate amounts of $150 million. So long as there is no default or unmatured default under the Credit Facility, the Borrowers may elect to increase the Credit Facility up to an aggregate principal amount of $750 million by increasing the commitment of one or more lenders who have agreed to such increase.
The Credit Facility matures on September 18, 2023. So long as there is no default or unmatured default under the Credit Facility and subject to the accuracy of the representations and warranties in the Credit Facility as of the extension date, the Borrowers may elect to extend the Credit Facility twice for an additional one year term on each such extension date, subject to lender participation.
The Credit Facility also contains negative covenants, including one that sets the ratio of maximum allowed total indebtedness to total capitalization at 0.65 to 1.00, for each Borrower.
The description above is only a summary of the material provisions of the Credit Facility and does not purport to be complete and is qualified in its entirety by reference to the provisions in such Credit Facility, a copy of which is attached hereto as Exhibit 10.1.
Item 1.02. Termination of a Material Definitive Agreement.
In connection with the entry into the Credit Facility described in Item 1.01,the following agreements were terminated effective September 18, 2018, (i) the credit agreement, dated as of August 9, 2010, as amended, among Evergy (as successor to Great Plains Energy Incorporated) and a syndicate of banks with a maturity date of October 17, 2019, which provided for a revolving credit facility of up to $200 million; (ii) the credit agreement, dated as of August 9, 2010, as amended, among KCP&L and a syndicate of banks with a maturity date of October 17, 2019, which provided for a revolving credit facility of up to $600 million; (iii) the credit agreement, dated as of August 9, 2010, as amended, among GMO and a syndicate of banks with a maturity date of October 17, 2019, which provided for a revolving credit facility of up to $450 million; (iv) the credit agreement, dated as of February 18, 2011, as amended, among Westar and a syndicate of banks with a maturity date of February 18, 2019, which provided for a revolving credit facility of up to $270 million; and (v) the fourth amended and restated credit agreement, dated as of September 29, 2011, as amended, among Westar and a syndicate of banks with a maturity date of September 29, 2019, which provided for a revolving credit facility of up to $730 million.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under anOff-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 above is incorporated herein by reference.
