UniSource, subsidiaries cut pricing, extend maturities via refinancing

By Susanna Moon

Chicago, Dec. 7 - UniSource Energy Corp. and some of its subsidiaries amended their credit agreements Nov. 18, extending the maturities of all of its revolving credit facilities by two years to Nov. 9, 2016, according to an 8-K filing with the Securities and Exchange Commission.

Tucson Electric Power Co. reduced the percentage of its total debt outstanding that is unhedged variable-rate debt, and UniSource Energy's consolidated interest expense on long-term and short-term debt was expected to increase by $4 million to $6 million in 2012 compared with 2011, the filing noted.

UniSource and its subsidiaries are Tucson, Ariz.-based electric companies.

UniSource

UniSource Energy amended its credit agreement consisting of a $125 million revolving credit and revolving letter-of-credit facility with Union Bank, NA as administrative agent, lead arranger and lender.

Pricing was reduced to Libor plus 175 basis points, with the spread based on UniSource Energy's credit ratings.

Tucson Electric

Tucson Electric amended its credit agreement with Union Bank for a $200 million revolving credit and revolving letter-of-credit facility and a $341 million letter-of-credit facility to support tax-exempt bonds.

Pricing was lowered to Libor plus 112.5 bps, with the spread based on Tucson Electric's credit ratings.

UNS Electric, UNS Gas

UNS Electric, Inc. and UNS Gas, Inc. as borrowers, with UniSource Energy Services Inc. as guarantor, amended their credit agreement with Union Bank for a $100 million revolving credit and revolving letter-of-credit facility.

The maximum amount that can be outstanding at any one time for a borrower is $70 million.

Pricing on the loans was reduced to Libor plus 150 bps, and the spread is based on credit ratings.

© 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.