Business Context and Reporting Period
This Form 8-K filing by Madison Gas and Electric Company (MGE) covers the date of March 31, 2009. The report details the amendment of a material definitive agreement regarding a committed credit facility with JPMorgan Chase Bank, N.A.
Key Financial Metrics
- Credit Facility Size: $20 million committed.
- Outstanding Borrowings: $0 as of March 31, 2009.
- Interest Rate Structure: Borrowings may bear interest at either the Eurodollar Rate plus 1.50% or the Alternate Base Rate plus 1%.
- Non-Use Fee: 0.150% per annum on the unused commitment.
- Facility Purpose: Serves as a backup facility to MGE's commercial paper program.
Material Changes
The primary change reported is the extension of the credit agreement's expiration date from March 31, 2009, to March 30, 2010. Additionally, the interest rate provisions and the non-use fee were modified as part of the amendment.
Outlook, Risks, and Management Commentary
The filing includes standard forward-looking statements cautioning that actual results may differ due to risks and uncertainties. MGE directs investors to its 2008 Annual Report on Form 10-K (Item 1A. Risk Factors) for a detailed discussion of these risks. The company does not undertake an obligation to update forward-looking statements after the date of this report.
Investor Verification Checklist
- Verify the specific terms of the Alternate Base Rate definition in the amended agreement.
- Confirm the status of MGE's commercial paper program, as this facility acts as a backup.
- Review the 2008 Form 10-K for comprehensive risk factors affecting MGE's liquidity and operations.
- Note that no financial performance metrics (revenue, profit, cash flow) are provided in this specific filing.