RGC Resources’ utility subsidiary, Roanoke Gas Company, extended and expanded its revolving credit note with Pinnacle Bank. The amended arrangement pushes the facility’s maturity to March 31, 2029, and increases the note’s stated maximum principal amount from $30 million to $50 million.
- Borrowing capacity: The note permits advances up to $50 million, but the amount Roanoke Gas can actually borrow is governed by tiered limits in the loan agreement. Those limits were revised, though the specific tiers are not stated in the provided terms.
- Interest rate: The note sets interest at one-month Term SOFR plus 1.25%, subject to provisions for replacing the benchmark if needed.
- Other terms: The remaining terms and requirements of the loan agreement and note were retained. RGC Resources’ existing guaranty of the subsidiary’s obligations to Pinnacle Bank remains in effect.
The amendment gives Roanoke Gas a later repayment deadline and a higher stated borrowing ceiling. The parent company remains responsible under its guaranty, while the loan agreement’s tiered limits determine how much of the $50 million ceiling is available to the utility.