RGC RESOURCES INC 8-K

What Happened
RGC Resources Inc. (via subsidiary Roanoke Gas Company) announced it entered into an unsecured delayed-draw promissory note for $15,000,000 with Pinnacle Bank on June 2, 2026 (via a Fourth Amendment to its loan agreement). Roanoke can draw the funds through September 20, 2026 and the company intends to draw the full $15M on August 20, 2026 to repay a maturing note. The note bears interest at Term SOFR plus 100 basis points, with interest payable monthly, and the principal is due August 20, 2029. On June 2, 2026 Roanoke also executed an interest rate swap for $15,000,000 that converts the variable-rate exposure to an effective fixed rate of 5.13% annually.

Key Details

• $15,000,000 unsecured delayed-draw promissory note (entered June 2, 2026).
• Draw window: any time through September 20, 2026; company intends to draw on August 20, 2026.
• Note interest: Term SOFR + 100 bps; interest paid monthly; principal due August 20, 2029.
• Interest rate swap executed June 2, 2026 fixes effective rate at 5.13% for the $15M amount.
• Existing guaranty, representations, warranties and covenants under the loan agreement remain in effect.

Why It Matters
This action addresses near-term refinancing needs by replacing a maturing note with a new $15M facility and locks in borrowing cost via a swap, providing interest-rate certainty (5.13% effective) for the term. For investors, key impacts are on the company’s liquidity and interest expense predictability—RGC is securing funds to meet a maturity and limiting variable-rate risk while preserving existing guarantees and loan covenants.