Allete amends, restates $400 million five-year credit agreement

By Sarah Lizee

Olympia, Wash., Jan. 16 – Allete, Inc. entered into an amended and restated $400 million unsecured credit agreement on Jan. 10 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC is the lead arranger and bookrunner.

The maturity date is Jan. 10, 2024.

The credit agreement may be increased by up to $150 million and Allete may make two requests to extend the maturity date, each for a one-year extension.

Advances may be used for general corporate purposes, to provide liquidity in support of the company’s commercial paper program and to issue up to $60 million in letters of credit.

Borrowings will bear interest at Libor plus a margin based on credit ratings.

There are also annual facility fees.

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

As of Jan. 10, Allete had availability under the facility of $382.2 million.

The energy company is based in Duluth, Minn.

© 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.