Oncor Electric Delivery obtains $600 million six-month term loan

By Sarah Lizee

Olympia, Wash., May 13 – Oncor Electric Delivery Co. LLC entered into a term loan credit agreement on Thursday with Barclays Bank plc as administrative agent, providing for an up to $600 million term loan due Nov. 9, 2019, according to an 8-K filing with the Securities and Exchange Commission.

Oncor may make up to two borrowings under the term loan agreement, except that the commitment of the lenders to provide up to $600 million in loans may terminate earlier than the maturity date under some conditions, including termination of the company’s merger agreement with InfraREIT.

Term loan proceeds may be used only to finance the repayment of debt owed by InfraREIT or its affiliates and to pay expenses and fees related to the merger.

Interest is Libor plus 65 basis points before Aug. 7, 2019 and Libor plus 90 bps after that.

In addition, the term loan agreement requires that Oncor maintain a consolidated senior debt to capitalization ratio of no greater than 0.65 to 1.00 and observe customary reporting requirements and other affirmative covenants.

The electric company is based in Dallas.

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