ITC Midwest secures $175m revolver

ITC Holdings (NYSE:ITC) subsidiary ITC Midwest on May 31 entered into a new revolving credit agreement, according to a Form 8-K filed June 1.

The credit agreement establishes an unguaranteed, unsecured revolving credit facility under which ITC Midwest may borrow up to $175m of which an amount of up to $50m may be used to request the issuance of letters of credit.

Funds borrowed may be used for general corporate purposes of ITC Midwest and its subsidiaries, the company stated.

At ITC Midwest’s option, loans under the credit agreement will bear interest at a rate equal to LIBOR plus an applicable margin of 1.00% or at a base rate, which is defined as the higher of the prime rate at the administrative agent’s principal office in New York, 0.5% above the federal funds rate or 1% above LIBOR for a one month interest period on such day, plus an applicable margin of 0.00%, in each case subject to adjustments based on rating, according to the filing.

The credit agreement will mature on May 31, 2017.

The credit agreement was entered into with the various financial institutions and other persons from time to time parties thereto as lenders, JPMorgan Chase Bank as administrative agent for the lenders; J.P. Morgan Securities and Barclays Bank as joint lead arrangers and joint bookrunners; and Barclays Bank as syndication agent.

In addition, ITC Midwest said that it has terminated the revolving credit agreement, dated as of January 29, 2008, and the revolving credit agreement, dated as of February 11, 2011, among ITC Midwest, the various financial institutions and other persons.

The termination became effective on May 31.