On March 24, 2025, Consolidated Edison Company of New York, Inc. (“CECONY”), a subsidiary of Consolidated Edison, Inc. (ED, Financial), announced the execution of a new 364-Day Revolving Credit Agreement. This agreement, effective as of the same date, involves multiple lenders and is administered by Bank of America, N.A. It replaces a previous credit agreement that expired on March 24, 2025.
The new Credit Agreement provides CECONY with a revolving credit facility of up to $500 million. This facility is primarily intended to support CECONY's commercial paper program, although it may also be utilized for other general corporate purposes. Loans under this agreement will generally be subject to variable interest rates, which are reflective of CECONY's credit rating.
The commitments from the lenders under this agreement are set to terminate on March 23, 2026. These commitments are contingent upon certain conditions, such as the absence of any default events. Notably, the agreement does not require the maintenance of specific credit rating levels or the absence of material adverse changes.
In the event of a change of control of CECONY or its parent company, Consolidated Edison, Inc., or if CECONY defaults, the lenders have the right to terminate their commitments. They may also demand immediate repayment of any outstanding loans, including accrued interest and other amounts due.
Default events under this agreement include failure to pay principal or interest, failure to meet certain financial covenants, and failure to make payments on material financial obligations exceeding $150 million. Additionally, any event that accelerates the maturity of significant debt obligations could also trigger a default.
This strategic financial arrangement underscores CECONY's commitment to maintaining financial flexibility and supporting its operational needs through robust credit facilities.
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