Oncor Electric enters 18-month $275 million springing-lien term loan

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – Oncor Electric Delivery Co. LLC entered into a credit agreement on Tuesday providing for a $275 million 18-month springing-lien term loan, according to an 8-K filed with the Securities and Exchange Commission.

Wells Fargo Securities LLC, Mizuho Bank (USA) and MUFG are the joint lead arrangers and bookrunners, and Wells Fargo Bank, NA is the administrative agent.

On Dec. 31, if the obligations under the term loan agreement are outstanding and the obligations under Oncor’s Oct. 11, 2011 amended and restated revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent are secured, the term loan will become secured by a lien on all property acquired or constructed by Oncor for the transmission and distribution of electric energy, mortgaged under the deed of trust, security agreement and fixture filing dated May 15, 2008, from Oncor to Bank of New York Mellon Trust Company, NA.

Loans will bear interest at Libor plus a spread ranging from 80 basis points to 90 bps, depending on whether the loan has become secured.

The term loan agreement requires Oncor to maintain a maximum debt to capitalization ratio of 0.65 times.

The agreement matures on March 26, 2019.

Proceeds of the term loan may be used for working capital and general corporate purposes.

The electric company is based in Dallas.

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