PSO Renews Economic Development Plan

pso

Tulsa-based Public Service Company of Oklahoma has announced the renewal of a partnership to promote regional economic development and one that provides financing to fund PSO’s ongoing capital needs.

PSO has teamed up with regional and local banks to renew its senior unsecured three-year term loan providing $­­­125 million in financing for PSO’s electric system assets to serve its customers.  The original agreement was announced in November 2013.

“This strategy has proven to be a true win-win,” said Stuart Solomon, president and chief operating officer for PSO.  “It provides PSO with financing on competitive terms to support our ongoing efforts to provide reasonably priced, safe and reliable electric service to our customers.  Plus, doing business with banks that have a significant presence in our service territory promotes stronger economies in the communities we serve.”

BOK Financial will be the sole lead arranger and administrative agent.  Seven additional Oklahoma banks that have a substantial presence in PSO’s service territory are participating in the financing.  Those banks are:

  • Arvest Bank
  • AVB
  • BancFirst
  • First National Bank Shawnee
  • Mabrey Bank
  • MidFirst Bank
  • Prosperity Bank

Having Oklahoma banks provide financing for utility capital assets expands more traditional financing strategies employed by PSO.  Historically, the opportunity to finance PSO assets was limited to large, national financial institutions with global portfolios and traditional capital markets.

“Raising capital within our service territory with this type of loan makes good business sense,” remarked Steven Fate, vice president of Regulatory and Finance for PSO.  “This transaction allows us to maintain the diversity of our lender base and provides the needed financing with debt that is shorter-term than we typically use.  In the process, we’ve strengthened relationships with banks operating within our service territory.”

PSO has a stable investment grade credit rating.  The company estimates several hundred million dollars will be needed over the next three years to support its growing asset base with a focus on new customer connections, system reliability, and new programs and technologies.

Chris Holder, executive vice president and director of Commercial Banking at BOK Financial in Tulsa noted, “Oklahoma’s financial institutions are known for investing in the communities we serve.  We commend PSO for again partnering with Oklahoma banks to improve services and accessibility to our communities, families, employees and beyond.”