MGE Energy, Inc. (MGEE) and its subsidiary Madison Gas and Electric Company (MGE) have amended and restated their existing credit agreements, with the agreements formally dated October 1, 2026. The filings indicate that the amendments were made to extend the maturity dates of the credit facilities.
Under the amended agreements, the maturity date for MGEE is set to expire on October 1, 2031. MGEE has the option to request up to two one-year extensions, which would push the expiration date to October 1, 2033, at the discretion of the lenders. The MGEE credit agreement allows for a maximum outstanding borrowing amount of $50 million, with the possibility to request an additional increase of up to $25 million, subject to lender approval.
For Madison Gas and Electric Company, the amended agreements include two separate facilities. The first, with JPMorgan Chase Bank, N.A., as administrative agent, has an initial term expiring on October 1, 2031. This agreement allows for a maximum outstanding amount of $210 million, an increase from the previous $90 million commitment. MGE may also request two one-year extensions, potentially extending the term to October 1, 2033. The second agreement, with U.S. Bank National Association as administrative agent, has a maximum outstanding amount of $40 million and expires on October 1, 2031.
The Third Amended and Restated Credit Agreements contain standard financial covenants. Each agreement requires the borrower to maintain a ratio of consolidated indebtedness to consolidated total capitalization not to exceed 65%. Additionally, a change of control is defined as a default event. For MGEE, this includes a failure to hold 100% of the outstanding voting equity interest in MGE. For MGEE shareholders, a change of control is defined as the acquisition of beneficial ownership of 30% or more of the voting power by one person or a group acting in concert.
