Alliant and subsidiaries enter $1 billion in new credit facilities

By Aleesia Forni

Columbus, Ohio, Dec. 19 - Alliant Energy Corp., Interstate Power and Light Co. and Wisconsin Power and Light Co. entered into new five-year credit agreements, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Wisconsin Power has $400 million available under its agreement, while both Alliant Energy and Interstate may borrow $300 million each.

Each facility contains a $100 million accordion feature upon the satisfaction of certain conditions.

Pricing on each facility ranges from Libor plus 79.5 basis points to 147.5 bps, based on each company's credit rating.

Facility fees range from 8 bps to 27.5 bps.

Borrowings may be used for general corporate purposes, including working capital and commercial paper back-up.

These facilities replace each company's existing credit agreements set to expire in November 2012.

These facilities will provide additional liquidity to assist in implementing the companies' strategic plans.

The revolving facilities are set to mature in December 2016 and may be extended for two one-year periods.

The agreements contain various covenants, including each company's maintenance of debt-to-capital ratios less than 65% for Alliant Energy and 58% for both Interstate and Wisconsin Power.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Barclays Capital, Citigroup Global Markets Inc., Bank of America Merrill Lynch, RBS Securities Inc., the Bank of Tokyo Mitsubishi UFJ Ltd. and UBS Securities LLC are joint lead arrangers and joint bookrunners.

Wells Fargo Bank NA is administrative agent, swingline lender and letter of credit issuing bank.

JPMorgan Chase Bank NA is syndication agent and letter of credit issuing bank.

Bank of America NA, Barclays Bank plc, Citibank NA, the Bank of Tokyo-Mitsubishi UFJ Ltd., the Royal Bank of Scotland plc and UBS Loan Finance LLC are co-documentation agents.

Interstate is a Cedar Rapids, Iowa, electricity provider.

Alliant is a Madison, Wis.-based energy company, and Wisconsin Power is a Madison, Wis.-based electricity provider.

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