Southwest Gas amends revolving credit agreement to add swingline sub-facility

Published 02/07/2025, 22:04
Southwest Gas amends revolving credit agreement to add swingline sub-facility

Southwest Gas Corporation, a subsidiary of Southwest Gas Holdings, Inc. (NYSE:SWX), a $5.3 billion utility company currently trading at a P/E ratio of 23.75, entered into an amendment to its revolving credit agreement on June 27, 2025, according to a statement released Wednesday through a Securities and Exchange Commission filing. According to InvestingPro analysis, the company appears overvalued at current levels, despite maintaining a GOOD overall financial health score.

The amendment, referred to as the First Amendment to the Credit Agreement, involves the company, its lenders, and Bank of America, N.A., acting as the administrative agent and swingline lender. The original revolving credit agreement was dated August 1, 2024.

Key changes in the amendment include the addition of a swingline sub-facility, which allows for short-term borrowing options within the overall credit facility. The amendment also introduces a one-week interest period option, with an interest rate calculated as the Daily Simple SOFR (Secured Overnight Financing Rate) plus 0.03839% and an applicable margin.

No further financial terms or amounts were disclosed in the filing. The company stated that the description provided is qualified in its entirety by reference to the full amendment document, which was filed as an exhibit.

Southwest Gas Holdings, Inc. is listed on the New York Stock Exchange under the ticker (NYSE:SWX). This information is based on a press release statement contained in the company’s SEC filing.

In other recent news, Southwest Gas Holdings Inc. reported its first-quarter 2025 earnings, revealing a mixed financial performance. The company exceeded earnings per share (EPS) expectations with $1.65, compared to the projected $1.42, but missed revenue forecasts, posting $1.3 billion against the anticipated $1.53 billion. Additionally, Southwest Gas Holdings reaffirmed its 2025 net income guidance of $265-$275 million. BofA Securities upgraded Southwest Gas Holdings’ stock from Underperform to Neutral and raised the price target to $74, acknowledging the company’s strategic actions, including a secondary offering of Centuri shares and a $50 million private placement, which reduced its ownership in Centuri to about 66%. The company generated approximately $225 million in net proceeds from these transactions, which BofA Securities believes will cover equity needs through 2025-2026. Furthermore, Southwest Gas Corporation amended its revolving credit agreement to include a swingline sub-facility and a one-week interest period option, executed with Bank of America as the administrative agent. These developments highlight the company’s ongoing financial maneuvers and regulatory engagements, including a more favorable regulatory environment in Arizona.

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