Madison — Madison Gas and Electric (MGE) today announced
a financing partnership with seven regional and locally owned banks
operating throughout MGE’s service territory.
The $40 million unsecured revolving credit facility will be used for
general corporate purposes.
“Raising capital in MGE’s service area helps form strong partnerships,”
said Jeff Newman, MGE Vice President and Chief Financial Officer. “We’ve
put in place a new form of financing that provides us with liquidity and
diversifies our lender base. In the process, we’ve established new
relationships with banks operating within MGE’s service area that are also
our customers.”
The seven banks participating in the financing agreement have a combined
102 branches across MGE’s service territory.
The U.S. Bank National Association, one of the participating banks, also
served as lead arranger and administrative agent. Other participating banks
include:
– AnchorBank
– Associated Bank (syndication agent)
– Capitol Bank
– Home Savings Bank
– McFarland State Bank
– State Bank of Cross Plains
“Supporting our local banks is a good fit for MGE,” said Gary Wolter, MGE
Chairman, President and CEO. “As a community energy company, we partner
with local businesses and organizations to help ensure strong economic
growth throughout our community.”
“Banks play a critical role as an economic driver in their communities,”
explained Rose Oswald Poels, Wisconsin Bankers Association President/CEO.
“By utilizing partnerships with local banks in this manner, MGE is taking
advantage of the great services these banks provide as well as supporting
an industry which will in turn help other local businesses grow and
families prosper.”
CFSD Group LLC served as an advisor to MGE on this financing arrangement.
About MGE
MGE generates and distributes electricity to 143,000 customers in Dane
County, Wis., and purchases and distributes natural gas to 149,000
customers in seven south-central and western Wisconsin counties. MGE’s
parent company is MGE Energy, Inc. (Nasdaq: MGEE). The company’s roots in
the Madison area date back more than 150 years.
