ITC, units line up $960 million loans at 125 bps, 100 bps spreads

By Susanna Moon

Chicago, Oct. 24 – ITC Holdings Corp. obtained a $400 million five-year unsecured revolving credit facility on Monday at Libor plus 125 basis points.

Meanwhile, International Transmission Co. entered into a $100 million five-year revolving credit agreement on Monday with interest at Libor plus 100 bps, according to an 8-K filed with the Securities and Exchange Commission.

Michigan Electric Transmission Co., LLC received a $100 million five-year revolving credit agreement with interest at Libor plus 100 bps.

ITC Midwest LLC received a $225 million five-year unsecured revolving credit facility with interest at Libor plus 100 bps.

ITC Great Plains, LLC received a $75 million five-year unsecured revolving credit facility with interest at Libor plus 100 bps.

For each revolver, JPMorgan Chase Bank, NA, Barclays Bank plc, Wells Fargo Securities, LLC, Bank of Nova Scotia and Mizuho Bank, Ltd. are the joint lead arrangers and joint bookrunners; JPMorgan Chase Bank, NA is the administrative agent; Barclays Bank plc and Wells Fargo Bank, NA are the co-syndication agents; and the Bank of Nova Scotia and Mizuho Bank, Ltd. are the co-documentation agents.

Proceeds may be used for general corporate purposes.

For the ITC loans, the covenants limit liens, mergers, consolidations, liquidations and sales, and require ITC to maintain a maximum debt to capitalization ratio of 80% and a FFO ratio of at least 9%.

The International Transmission, Michigan Electric, ITC Midwest and ITC Great Plains agreements also limit liens, mergers, consolidations, liquidations and sales, and require a maximum debt to capitalization ratio of 65%.

The revolvers mature on Oct. 21, 2022.

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

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