Allete gets $125 million two-year term loan at Libor plus 62.5 bps

By Marisa Wong

Morgantown, W.Va., Aug. 28 – Allete, Inc. entered into a $125 million term loan agreement on Aug. 25 with JPMorgan Chase Bank, NA and Bank of America, NA as lenders, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC is the lead arranger and bookrunner, and JPMorgan Chase Bank is the administrative agent.

The term loan is an unsecured, single-draw loan due on Aug. 25, 2017.

The interest rate is equal to Libor plus 62.5 basis points.

Loan proceeds will be used for general corporate purposes, including the refinancing of the company’s $75 million term loan dated Aug. 25, 2011.

The loan agreement includes a financial covenant to maintain a ratio of total debt to total capitalization equal to or less than 65%.

The energy company is based in Duluth, Minn.

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