Alliant Energy Corporation (NASDAQ:LNT), a utility company with a market capitalization of $15.27 billion, along with its subsidiaries Interstate Power and Light Company and Wisconsin Power and Light Company, has amended its credit agreement, resulting in an increased credit facility and extended termination date.
The modification, effective today, enhances the credit line from $1 billion to $1.3 billion and prolongs the facility's expiration from December 18, 2028, to December 18, 2029. According to InvestingPro analysis, this move comes as the company manages a total debt of $10.68 billion, with current financial metrics indicating short-term obligations exceed liquid assets.
This second amendment to the original agreement dated December 17, 2021, also renews the option for two one-year extensions to further defer the facility's termination date. The revision allows for increased borrowing sublimits: Alliant Energy's share rises from $450 million to $600 million, Interstate Power and Light's from $250 million to $300 million, and Wisconsin Power and Light's from $300 million to $400 million.
Additionally, the uncommitted accordion feature, which permits further increases in lender commitments, has grown from $300 million to $700 million. For investors seeking deeper insights into Alliant Energy's financial health and metrics, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.
The obligations outlined in the amendment are several, meaning each company's responsibility is independent and not jointly shared. There is no cross-guarantee of obligations among the borrowers. This financial restructuring is detailed in the Second Amendment filed as Exhibit 4.1 with the SEC.
This strategic financial move by Alliant Energy and its subsidiaries is set to provide them with increased financial flexibility. It is noteworthy that the agreement was facilitated by Wells Fargo (NYSE:WFC) Bank, National Association, acting as the Administrative Agent, along with other participating lenders.
The information provided in this article is based on a press release statement.
In other recent news, Alliant Energy Corp reported an increase in third-quarter earnings, with earnings per share (EPS) rising to $1.15 from $1.05 in the same quarter of the previous year.
Alliant Energy has narrowed its 2024 earnings guidance to $2.99-3.06 and provided its first outlook for 2025, projecting EPS in the range of $3.15-3.25. Scotiabank (TSX:BNS) downgraded Alliant Energy's stock rating from Sector Outperform to Sector Perform due to concerns over the near-term earnings outlook.
Jefferies and BMO Capital Markets also made adjustments to their outlooks on Alliant Energy, with Jefferies retaining a Hold rating while raising the stock's price target to $69 from $67, and BMO Capital Markets reducing the firm's price target on the stock to $61 from the previous $65 but maintaining a Market Perform rating.
In addition to earnings and revenue results, Alliant Energy has strategic plans to expand data center capacity and transition to renewable energy, with significant capital expenditure planned through 2028.
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