DALLAS--(BUSINESS WIRE)--Oncor Electric Delivery Company LLC (“Oncor”) announced today that it closed on an amended and restated senior-secured, revolving credit facility with an aggregate initial borrowing capacity of $2 billion with a customary accordion feature allowing Oncor to request an increase of up to $500 million.
The five-year restated facility amends Oncor’s existing facility, which would have expired in 2013. Oncor renegotiated its current credit facility early, taking advantage of favorable market conditions to ensure continued access to liquidity through 2016. It now has a five-year term expiring in 2016, and gives Oncor the option to request extensions for two additional one-year periods.
“As we examined current global market conditions and analyzed our projected liquidity needs over the next five years, we are confident that this is the optimal time to extend the term of our credit facility,” Oncor Senior Vice President and Chief Financial Officer David Davis said. “Given the volatility of the market, we are very pleased with the strong financial position this puts Oncor in as it allows us to focus on future opportunities.”
The facility’s drawn costs are LIBOR plus a margin ranging from 100 to 175 basis points, depending on Oncor’s ratings. The current drawn cost is LIBOR plus 112.5 basis points. The Syndication Agents for the restated facility are Barclays Capital and The Royal Bank of Scotland plc. The Joint Lead Arrangers for the restated facility are Barclays Capital, RBS Securities Inc., Citigroup Global Markets Inc., Credit Suisse AG, Cayman Islands Branch, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Morgan Stanley Senior Funding, Inc., and the Documentation Agents are Bank of America, N.A., Citibank, N.A., Credit Suisse AG, Cayman Islands Branch and Morgan Stanley Bank, N.A. JPMorgan Chase Bank, N.A., is serving as the Administrative Agent, Fronting Bank and Swingline Leader. Barclays Bank PLC, The Royal Bank of Scotland plc, Bank of America, N.A. and Citibank, N.A. are serving as Fronting Banks.
Oncor’s assets and liabilities are separate from those of Energy Future Holdings Corp. (EFH) and its subsidiaries outside the Oncor ring-fence.
Oncor Electric Delivery Company LLC (“Oncor”) is a regulated electricity distribution and transmission business that uses superior asset management skills to provide reliable electricity delivery to consumers. Oncor operates the largest distribution and transmission system in Texas, delivering power to more than 3 million homes and businesses and operating approximately 118,000 miles of transmission and distribution lines in Texas. While Oncor is owned by a limited number of investors (including majority owner, Energy Future Holdings Corp.), Oncor is managed by its Board of Directors, which is comprised of a majority of independent directors.