Oncor Electric to draw down $600 million available under term loan to repay debt

By Rebecca Melvin

Concord, N.H., Feb. 25 – Oncor Electric Delivery Co. LLC plans to borrow $600 million available under a term loan credit agreement dated Jan. 28 with which the company will repay debt, according to an 8-K filed with the Securities and Exchange Commission.

The drawdown is being made on Feb. 28 pursuant to a notice submitted on Feb. 23.

Borrowings bear interest at SOFR plus 57.5 basis points.

The loan matures on April 23, 2023.

The lender group was led by PNC Bank, NA as administrative agent with joint lead arrangers and joint bookrunners PNC Capital Markets LLC, U.S. Bank NA, Sumitomo Mitsui Banking Corp. and Wells Fargo Securities LLC and co-syndication agents U.S. Bank NA, Sumitomo Mitsui Banking Corp. and Wells Fargo Securities LLC.

The current borrowing will be used to repay outstanding commercial paper notes and redeem $400 million principal amount outstanding of its 4.1% senior secured notes due 2022 on March 1.

The aggregate principal amount of the term loan is $1.3 billion. Under the term loan agreement, Oncor was able to borrow up to the full amount in up to four borrowings at any time before April 28. Oncor borrowed $400 million of the loan on Jan. 28.

Oncor is an electric utility based in Dallas.

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