Oncor Electric Delivery completed a $450 million term loan credit agreement with Sumitomo Mitsui Banking as the administrative agent.
The Sempra Energy subsidiary can borrow the full loan amount in up to four borrowings at any time before April 27, according to a Jan. 30 filing.
The loans, which have a maturity date of June 1, 2021, will bear yearly interest equal to London interbank offered rate plus 0.50% until June 1, 2021, or a certain alternate base rate, at Oncor’s option.
On January 29, the company borrowed $163 million under the loan agreement and plans to apply use the proceeds for general corporate purposes.
Jones Day advised Oncor regarding the transaction.
Dallas-based Oncor Electric Delivery is Texas’s largest transmission and distribution electric utility.