Oncor Electric Delivery enters $625 million one-year term loan

By Wendy Van Sickle

Columbus, Ohio, Jan. 30 – Oncor Electric Delivery Co. LLC entered into a $625 million term loan credit agreement on Jan. 24 with Toronto Dominion (Texas) LLC as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

TD Securities (USA) LLC, Mizuho Bank, Ltd., PNC Bank, NA and Sumitomo Mitsui Banking Corp. are joint lead arrangers and bookrunners.

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 March 27. The company made an initial borrowing of $500 million on the closing date.

Upon the earlier to occur of the third borrowing under the term loan agreement or March 27, 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 85 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.

The electric company is based in Dallas.

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