Oncor Electric Delivery enters $650 million one-year term loan

By Marisa Wong

Los Angeles, July 8 – Oncor Electric Delivery Co. LLC entered into a $650 million term loan credit agreement on July 6 with Sumitomo Mitsui Banking Corp. as administrative agent, bookrunner and a joint lead arranger, according to an 8-K filing with the Securities and Exchange Commission.

PNC Capital Markets LLC and U.S. Bank NA are joint lead arrangers alongside Sumitomo.

The term loan has a maturity date that is 366 days after the date on which the funding availability period ends.

Oncor may borrow up to the full amount of the term loan in up to three borrowings, which may be made, at Oncor’s option, at any time on or before Aug. 31.

Upon the earlier to occur of the third borrowing under the term loan agreement or Aug. 31, any unused commitments will terminate.

Loans bear interest at adjusted SOFR (one-month term SOFR plus an adjustment of 10 basis points) or daily simple SOFR plus a spread of 60 bps.

The loan agreement requires that Oncor maintain a consolidated senior debt to capitalization ratio of no greater than 0.65 to 1.00.

Oncor intends to use loan proceeds for working capital and other general corporate purposes.

As of July 8, no borrowings were made under the credit agreement.

The electric company is based in Dallas.

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