By Lisa Kerner
Charlotte, N.C., April 26 – Michigan Electric Transmission, LLC, an indirect wholly owned subsidiary of ITC Holdings Corp., issued $200 million of 3.9% senior secured notes due 2046 in a private placement to accredited investors, according to an 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.
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, and at any time or from time to time with sufficient notice and including interest and a make-whole amount, if any.
The notes have a make-whole call at Treasuries plus 50 basis points. Michigan Electric Transmission must redeem not less than $5 million in total principal amount in the case of a partial redemption.
The issuer may also redeem the notes in whole on or after Oct. 26, 2045 at par plus accrued interest.
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: | April 26, 2046
|
| Coupon: | 3.9%
|
| Price: | Par
|
| Yield: | 3.9%
|
| Call option: | Make-whole at Treasuries plus 50 bps; beginning Oct. 26, 2045, in whole at par
|
| Settlement date: | April 26
|
| Distribution: | Private placement
|
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