Allete agrees $75 million term loan facility at Libor plus 100 bps

By Aleesia Forni

Columbus, Ohio, Aug. 31 - Allete Inc. entered into a new $75 million unsecured term loan credit facility, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The loan bears an interest of Libor plus 100 basis points.

The company also entered into an interest rate swap agreement, locking the rate at 1.825% for the length of the loan.

Proceeds from the facility will be used for general corporate purposes.

JPMorgan Securities LLC is sole lead arranger and sole bookrunner. JPMorgan Chase Bank, NA is administrative agent.

The loan is due August 25, 2014.

The facility includes a covenant requiring the company to maintain a total indebtedness to total capitalization ratio of 65%.

Allete is a Duluth, Minn.-based energy company.

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