Unitil Corporation (NYSE:UTL), a provider of electric and gas utility service, announced on Thursday an amendment to its existing credit agreement with Bank of America (NYSE:BAC), N.A., and other lenders. The First Amendment introduces a quarterly payment schedule for the commitment fee, a detail that was previously omitted in the Third Amended and Restated Credit Agreement.
The adjustment was made to the credit agreement originally established among Unitil, Bank of America, N.A. as the administrative agent, and other lenders including Citizens Banks, N.A., and TD Bank, N.A. The amendment specifies the payment schedule for the commitment fees, ensuring clarity on the financial obligations of Unitil under the agreement.
This amendment ensures Unitil’s financial arrangements are up to date with the agreed terms and provides transparency for investors regarding the company’s financial commitments.
The article is based on an 8K filing.
In other recent news, Unitil Corporation is set to acquire Bangor Natural Gas Company from PHC Utilities, Inc. for $70.9 million, with the transaction expected to close by the end of Q1 2025. Upon completion, Bangor will operate as a wholly-owned subsidiary of Unitil. The purchase, financed through a mix of equity and debt, is seen as a strategic fit for Unitil, complementing its existing operations in Maine.
Unitil has also reported a strong start to 2024, with Q1 net income increasing by 12% to reach $27.2 million. This growth is attributed to the company's focus on operational efficiency and cost management.
Additionally, the company's Kingston solar project in New Hampshire is progressing as planned, reinforcing Unitil's commitment to climate and energy sustainability.
Analysts have highlighted Unitil's robust balance sheet and investment-grade credit ratings as indicators of the company's financial health. They anticipate that the company's dividend payout will remain within a target range of 55% to 65%.
InvestingPro Insights
As Unitil Corporation (NYSE:UTL) amends its credit agreement to clarify its financial commitments, investors may consider additional financial metrics and InvestingPro Tips to assess the company's current position. With a market capitalization of $937.13 million and a P/E ratio of 19.21, Unitil trades at a valuation that requires scrutiny, especially in relation to its earnings growth. The company's dividend yield stands at 2.93%, reflecting its commitment to returning value to shareholders, as evidenced by its track record of raising dividends for 9 consecutive years and maintaining payments for 40 years. In the short term, Unitil has outperformed with strong returns over the last month and three months, signaling positive investor sentiment.
InvestingPro Tips highlight that while Unitil is trading at a high P/E ratio relative to near-term earnings growth, analysts predict profitability for this year. Additionally, the company's short-term obligations exceeding its liquid assets is an important consideration for risk assessment. For investors seeking a deeper dive into Unitil's financial health and future prospects, InvestingPro offers more tips and a comprehensive analysis. To gain access to these insights, investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With 8 additional InvestingPro Tips available, informed decisions are within reach.
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