By Lisa Kerner
Charlotte, N.C., Oct. 29 - Michigan Electric Transmission, LLC, an indirect wholly owned subsidiary of ITC Holdings Corp., issued $75 million principal amount of 3.98% senior secured notes due 2042 in a private placement to accredited investors, according to a form 8-K filed by ITC with the Securities and Exchange Commission.
Proceeds will be used to refinance debt, to partially fund capital expenditures or for general corporate purposes.
Interest on the notes is payable semiannually on March 31 and Sept. 30 of each year, beginning on March 31, 2013, the filing said,
Michigan Electric Transmission may redeem the bonds, in whole or in part, in an amount not less than $5 million in total principal amount in the case of a partial redemption.
The notes have a make-whole call at Treasuries plus 50 basis points.
Michigan Electric and ITC are electricity transmission companies based in Ann Arbor, Mich., and Novi, Mich., respectively.
| Issuer: | Michigan Electric Transmission, LLC
|
| Issue: | Senior secured notes
|
| Amount: | $75 million
|
| Maturity: | Oct. 26, 2042
|
| Coupon: | 3.98%
|
| Price: | Par
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Oct. 26
|
| Distribution: | Private placement
|
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