ITC gets $200 million term loan due 2013 at Libor plus 100 bps

By Angela McDaniels

Tacoma, Wash., Aug. 27 - ITC Holdings Corp. closed on a $200 million term loan due Aug. 23, 2013 on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The initial interest rate is Libor plus 100 basis points. The margin over Libor ranges from 62.5 bps to 125 bps depending on the company's credit ratings.

JPMorgan Chase Bank, NA is the administrative agent. J.P. Morgan Securities LLC, Barclays Bank plc, Deutsche Bank Securities, Inc. and Wells Fargo Securities, LLC are the lead arrangers and bookrunners. Barclays Bank and Deutsche Bank Securities are the syndication agents, and Wells Fargo Bank, NA is the documentation agent.

The loan is prepayable at any time without premium or penalty.

The loan may be used for general corporate purposes, including the repayment of revolving borrowings.

The credit agreement contains covenants that, among other things, require ITC Holdings to maintain a maximum debt to capitalization ratio of 75%.

ITC is an electric transmission company based in Novi, Mich.

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