Wed, Aug 14, 8:32 PM (153 days ago)
On August 14, 2024, IPALCO Enterprises, Inc. announced that its subsidiary, Indianapolis Power & Light Company (AES Indiana), entered into a $400,000,000 senior unsecured term loan agreement with PNC Bank and U.S. Bank as lead arrangers. The loan has a maturity of 364 days and will accrue interest based on either a base rate or Term SOFR rate plus an applicable margin. The funds will be utilized for general corporate purposes. The agreement includes standard covenants, including a financial covenant that limits AES Indiana’s consolidated total debt to consolidated total capitalization ratio to a maximum of 0.67:1. This strategic financial move is expected to bolster AES Indiana’s liquidity and operational flexibility. The existing banking relationships with the lenders may further enhance credit conditions. The announcement could positively impact IPALCO's financial position, as the loan provides additional capital for growth initiatives while maintaining manageable debt levels.