Oncor Electric enters into five-year $2 billion revolving facility

By Wendy Van Sickle

Columbus, Ohio, Nov. 21 – Oncor Electric Delivery Co. LLC entered into a credit agreement on Friday providing for a five-year $2 billion revolving credit facility with a $400 million accordion feature, according to an 8-K filed with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus a margin ranging from 87.5 basis points to 150 bps, depending on Oncor’s credit ratings. The initial margin is 112.5 bps.

There is a commitment fee ranging from 7.5 bps to 22.5 bps. Based on current ratings, the initial commitment fee is 12.5 bps.

JPMorgan Chase Bank, NA, Citigroup Global Markets Inc., Mizuho Bank, Ltd., Barclays Bank plc, MUFG Union Bank, NA, Wells Fargo Securities, LLC and RBC Capital Markets are the joint lead arrangers and bookrunners.

Citibank, NA and Mizuho are the syndication agents and Barclays, MUFG Union, Wells Fargo Bank, NA and Royal Bank of Canada the documentation agents.

JPMorgan is the administrative agent.

Oncor must maintain a maximum consolidated senior debt to capitalization ratio of 0.65 to 1.00.

The revolver matures on Nov. 17, 2022 and has up to two one-year extension options.

Proceeds will be used for general corporate purposes.

In connection with the new revolver, Oncor repaid and terminated its October 2011 $2 billion revolving credit agreement with JPMorgan Chase as administrative agent. That revolver was due to mature in October 2018.

The electric company is based in Dallas.

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