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Consolidated Edison Company of New York, Inc., a subsidiary of Consolidated Edison, Inc. (NYSE:ED), entered into a $500 million 364-day senior unsecured term loan credit agreement on Monday. According to a statement included in a Securities and Exchange Commission filing, the agreement was executed with U.S. Bank National Association as administrative agent, and U.S. Bank National Association and PNC Capital Markets LLC as joint lead arrangers and bookrunners. The utility company, which currently carries a total debt of $26.67 billion against a market capitalization of $35.93 billion, maintains a debt-to-capital ratio of 0.42 as of the most recent quarter.
The company borrowed the full $500 million under the new credit agreement on Monday. The proceeds were used to repay a portion of its unsecured term loan facility that was due in November 2025. This debt management move comes as InvestingPro data shows Consolidated Edison maintains a current ratio of 1.08, indicating adequate liquidity to meet short-term obligations. The company has also distinguished itself with 51 consecutive years of dividend increases, appealing to income-focused investors with its current 3.39% yield.
The credit agreement allows Consolidated Edison Company of New York to prepay any term loans issued under the arrangement before maturity. Events of default under the agreement include failure to pay principal, interest, or fees within specified timeframes, and failure to meet certain financial covenants. These covenants include maintaining a consolidated debt to consolidated total capital ratio not exceeding 0.65 to 1, and not creating liens or encumbrances on assets exceeding 10% of the company’s consolidated net tangible assets.
The agreement also specifies that a default could occur if the company or its material subsidiaries fail to make payments on material financial obligations exceeding $150 million, or if an event causes the acceleration of maturity of any such debt.
This information is based on a press release statement included in the company’s SEC filing.
In other recent news, Consolidated Edison Company of New York has announced a $900 million debt offering. The company entered into an underwriting agreement for the sale of 5.75% Debentures, Series 2025 A, due 2055. Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC are acting as representatives of the underwriters for this transaction. The debentures were registered under the Securities Act of 1933, with the registration statement becoming effective on August 1, 2024. Additionally, Consolidated Edison declared a quarterly dividend of 85 cents per share, payable on December 15, 2025, to stockholders of record as of November 19, 2025. In analyst news, Mizuho reaffirmed its Outperform rating for Consolidated Edison, maintaining a price target of $112.00. The reaffirmation follows the company’s investor call, where it outlined plans for expanding its electric vehicle charging infrastructure and substation network, along with potential renewable generation projects. These developments highlight Consolidated Edison’s ongoing strategic initiatives and financial activities.
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