Oncor Electric obtains $350 million term loan at Libor plus 55 bps

By Sarah Lizee

Olympia, Wash., Dec. 11 – Oncor Electric Delivery Co. LLC entered into a term loan credit agreement on Monday with Mizuho Bank, Ltd. as administrative agent providing for a $350 million term loan due Dec. 9, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date may be extended at the borrower’s option up to an additional six months, maturing no later than June 9, 2020, subject to some conditions.

Loans bear interest at Libor plus 55 basis points initially, stepping up to Libor plus 60 bps on Dec. 10, 2019 if the maturity date is extended.

The company is required to maintain a consolidated senior debt to capitalization ratio of no greater than 0.65 to 1.

On Monday, Oncor borrowed the full amount under the term loan agreement. The company said it intends to apply the proceeds for general corporate purposes, including to repay notes under its commercial paper program.

Mizuho Bank (USA) and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners.

The electric company is based in Dallas.

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