Old Dominion Electric enters into $500 million five-year revolver

By Wendy Van Sickle

Columbus, Ohio, March 8 – Old Dominion Electric Cooperative entered into a $500 million five-year first amended and restated senior unsecured revolving credit agreement on March 3, according to an 8-K filed with the Securities and Exchange Commission.

Borrowings will bear interest at Libor plus a margin of 90 basis points to 150 bps, depending on Old Dominion’s credit ratings. There is a commitment fee of 5 bps to 30 bps, also depending on credit ratings. The initial margin is 100 bps, and the initial commitment fee is 10 bps.

Financial covenants include a maximum debt-to-capitalization ratio of 0.85 times and a minimum margins-for-interest ratio of 1.1 times.

Wells Fargo Securities LLC, CoBank, ACB and Bank of America Merrill Lynch are the bookrunners and lead arrangers.

Wells Fargo Bank, NA is the administrative agent, CoBank the syndication agent and Bank of America, NA the documentation agent.

The credit agreement matures on March 3, 2022 and replaces the company’s credit agreement dated March 12, 2014.

Proceeds will be used for the issuance of letters of credit and general corporate purposes.

The electric utility company is based in Glen Allen, Va.

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