By Stephanie N. Rotondo
Portland, Ore., Dec. 23 - ITC Holdings Corp. released details regarding its recent private placements Tuesday in a filing with the Securities and Exchange Commission.
ITC said late Monday that two of its subsidiaries, Michigan Electric Transmission Co. and ITC Midwest LLC, issued $125 million of new debt through the placement.
Michigan Electric issued $50 million of 6.63% notes due Dec. 18, 2014, priced at par. ITC Midwest issued $40 million of 7.12% first mortgage bonds due Dec. 22, 2017 and $35 million of 7.27% notes due Dec. 22, 2020, both priced at par.
In the 8-K filing, ITC said interest on the Michigan Electric bonds was payable semi-annually on June 30 and Dec. 30 of each year, beginning in 2009. The notes include a make-whole call at Treasuries plus 50 basis points. The bonds are secured by a first mortgage lien on substantially all of Michigan Electric's assets.
Interest on ITC Midwest's 7.12% and 7.27% bonds - called the series B and C bonds, respectively - is also payable on June 30 and Dec. 30. Like the Michigan Electric issue, the bonds include a make-whole call at Treasuries plus 50 bps. Substantially all of ITC Midwest's assets secure the debt.
Both placements include the customary covenants, including events of default.
"We are very pleased we completed these debt issuances in these difficult capital markets," ITC chairman, president and chief executive officer Joseph L. Welch said in a company news release Monday.
"These security issuances will enable ITC and its subsidiaries to complete our capital expenditure plans for 2009."
ITC is an electricity transmission company based in Novi, Mich.
| Issuers: | Michigan Electric Transmission Co. and ITC Midwest
|
| Total amount: | $125 million
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| Distribution: | Private placement
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|
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| Issuer: | Michigan Electric Transmission Co.
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| Issue: | Senior secured notes
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| Amount: | $50 million
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| Maturity: | Dec. 18, 2014
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| Coupon: | 6.63%
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| Price: | Par
|
| Make-whole call: | Treasuries plus 50 bps
|
| Settlement date: | Dec. 18
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|
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| Series B notes
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| Issuer: | ITC Midwest
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| Issue: | First mortgage bonds
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| Amount: | $40 million
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| Maturity: | Dec. 22, 2017
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| Coupon: | 7.12%
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| Price: | Par
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| Make-whole call: | Treasuries plus 50 bps
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| Settlement date: | Dec. 22
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| Series C notes
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| Issuer: | ITC Midwest
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| Issue: | First mortgage bonds
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| Amount: | $35 million
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| Maturity: | Dec. 22, 2020
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| Coupon: | 7.27%
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| Price: | Par
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| Make-whole call: | Treasuries plus 50 bps
|
| Settlement date: | Dec. 22
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