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| RGCO > SEC Filings for RGCO > Form 8-K on 26-Mar-2009 | All Recent SEC Filings |
26-Mar-2009
Entry into a Material Definitive Agreement, Financial Statements and Exhibits
On March 23, 2009, Roanoke Gas Company ("Roanoke"), the utility subsidiary or RGC Resources, Inc. ("Resources") entered into a new Promissory Note in the original principal amount of $18,000,000 in favor of Wachovia Bank, National Association ("Wachovia"). This Note renews, extends and modifies a Promissory Note dated June 30, 2008, in the original principal amount of $28,000,000 delivered by Roanoke in favor of Wachovia. The new Note modifies the principal amount of the existing Note and extends the expiration date to March 31, 2010. The new Note has an effective date of April 1, 2009.
In addition and in connection with the Promissory Note for Roanoke, Resources executed a new Unconditional Guaranty in favor of Wachovia unconditionally guaranteeing timely payment and performance of any obligations of Roanoke to Wachovia.
The purpose of the Note is to provide working capital financing for Roanoke's operations. This current Note with Wachovia provides for variable interest rate based upon 30-day LIBOR, an availability fee applied to the difference between the face amount of the note and the average outstanding Note balance during the period, and a multiple-tier level for borrowing limits to accommodate seasonal borrowing demands. The multiple-tier approach minimizes the Company's borrowing costs by improving the level of utilization on its line-of-credit arrangement, minimizing the effect of the availability fee, and providing greater credit availability as borrowing requirements increase. The Note provides for borrowing limits that range from $1,000,000 to a maximum of $18,000,000 during the term of the Note.
(d) Exhibits.
10.1 Promissory Note in the original principal amount of $18,000,000 by Roanoke Gas Company in favor of Wachovia Bank, National Association dated March 23, 2009.
10.2 Unconditional Guaranty by and between RGC Resources, Inc. and Wachovia Bank, National Association, dated March 23, 2009 for the benefit of Roanoke Gas Company.
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