By Lisa Kerner
Charlotte, N.C., March 3 - MGE Energy, Inc. subsidiary MGE Power Elm Road, LLC sold $30 million of its 4.74% senior secured notes, series B, due 2041 to Metropolitan Life Insurance Co., according to a form 8-K filing with the Securities and Exchange Commission.
Proceeds from the sale were used to repay existing short-term debt at MGE Energy consisting of bank loans, which were used to finance a portion of the construction of two coal-fired generating units in Oak Creek, Wis.
The notes have a make-whole call at Treasuries plus 50 basis points.
The notes provide for monthly principal and interest payments beginning March 25 and until maturity.
The notes have an effective average life of 15 years, the filing said.
Under the note purchase agreement, MGE is required to maintain a projected debt service coverage ratio at the end of any calendar quarter of not less than 1.25 to 1.00 for the trailing 12-month period.
Previously, the company issued $50 million of 5.04% senior secured notes, series, due 2040.
The series A notes and the series B notes are secured under the provisions of a Feb. 3 collateral trust indenture among MGE Power and U.S. Bank NA, as collateral trustee.
MGE Power has an 8.33% ownership interest in both of the generating units in Wisconsin. Each unit has the capacity to produce 615 megawatts of electricity, and both units are operational and leased to Madison Gas and Electric Co.
Madison Gas is a subsidiary of MGE Energy, a public utility holding company based in Madison, Wis.
| Issuer: | MGE Power Elm Road, LLC
|
| Issue: | Senior secured notes, series B
|
| Amount: | $30 million
|
| Maturity: | Feb. 25, 2041
|
| Coupon: | 4.74%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Purchaser: | Metropolitan Life Insurance Co.
|
| Settlement date: | Feb. 28
|
| Distribution: | Private placement
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
