Alliant Energy gets $500 million term loan, repays $250 million loan

By Angela McDaniels

Tacoma, Wash., Oct. 7 – Alliant Energy Corp. subsidiary Alliant Energy Finance, LLC entered into a $500 million two-year term loan on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus a margin that ranges from 65 basis points to 90 bps depending on the company’s ratings.

JPMorgan Chase Bank, NA is the lead arranger, the bookrunner and the administrative agent. The other lenders are Bank of New York Mellon and U.S. Bank NA.

Alliant Energy guarantees the loan.

Proceeds were used to repay Alliant Energy’s $250 million term loan, to reduce its outstanding commercial paper, to repay Franklin County Holdings LLC’s $60 million term loan and for general corporate purposes.

The credit agreement contains covenants that, among other things, require Alliant Energy to maintain a debt-to-capital ratio of not greater than 65% on a consolidated basis and to reduce certain debt commitments using any proceeds from asset sales, with certain exclusions, in excess of 20% of its consolidated assets.

Alliant Energy is a Madison, Wis., utility holding company.

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