Integrys Energy gets $465 million revolving line at Libor plus 125 bps

By Susanna Moon

Chicago, May 9 - Integrys Energy Group, Inc. obtained a $465 million revolving credit line, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will be at a Libor plus 125 basis points, with an unused fee of 17.5 bps of 17.5 basis points and letter-of-credit fees of 125 bps. The spread is 87.5 bps to 175 bps based on the company's debt rating.

The company entered into an unsecured five-year credit agreement on May 8 with Bank of Tokyo-Mitsubishi UFJ, Ltd. as syndication agent; Bank of Nova Scotia and U.S. Bank NA as documentation agent; JPMorgan Chase Bank, NA is the administrative agent and swingline lender; the Bank of Nova Scotia and U.S. Bank NA as the lead arrangers and book managers; and J.P. Morgan Securities LLC and the Bank of Tokyo-Mitsubishi UFJ, Ltd. are the active lead arrangers and book managers.

The new credit agreement matures on May 8, 2019.

Proceeds will be used to provide backup support for commercial paper borrowings and letters of credit.

The new agreement replaces the $275 million three-year credit agreement and the $200 million five-year credit agreement, both of which were entered into in May 2011.

The entire $465 million revolving credit line is available for letters of credit. The amounts of any letters of credit issued and outstanding under the agreement will be reserved and will not be available for other borrowings.

The new agreement includes a covenant to maintain a debt to total capitalization ratio not to exceed 65%, excluding non-recourse debt.

The unsecured $135 million credit facility maturing in 2014 of Wisconsin Public Service Corp., a wholly owned subsidiary of Integrys Energy Group, was also replaced at an identical commitment level, the filing noted.

Integrys is a Chicago-based diversified energy holding company.

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