SR-A Spire Inc

Item 8.01 Other Events.

In February 2021, a wave of extreme, cold temperatures across the central U.S. increased the demand for natural gas while limiting the available supply of the commodity, significantly impacting market pricing in many parts of the Midwest. Spire Missouri was able to meet its customers’ needs as a result of robust supply and planning, including both storage and gas from the Spire STL Pipeline. While we were able to meet customer demand without disruption, the market prices for incremental purchases of natural gas were much higher than normal.  

While Spire has sufficient liquidity to cover its purchased gas costs it is taking steps to ensure that its financial flexibility is maintained. As a result, Spire Missouri has entered into a loan agreement (the “Loan Agreement”) with U.S. Bank, as administrative agent, and the lenders party thereto. The Loan Agreement provides a $250 million, 364-day unsecured term loan, maturing on March 22, 2022, with an interest rate based on LIBOR plus 65 basis points, which carries no prepayment penalty, and has the same covenants as our Revolving Credit Facility dated October 31, 2018 as amended. The foregoing summary of the Loan Agreement is not complete and is qualified in its entirety by reference to the full text of the Loan Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

Purchased gas costs are tracked and recovered through regulatory mechanisms, including the Purchased Gas Adjustment clause in Missouri. Spire is engaged with the Missouri Public Service Commission to determine how such costs should be addressed in order to achieve reasonably timely recovery while striving to minimize the impact on customers’ bills.