Allete gets $150 million revolver due 2014 at Libor plus 90-147.5 bps

By Angela McDaniels

Tacoma, Wash., Feb. 6 - Allete, Inc. entered into a new $150 million revolving credit facility due Jan. 31, 2014 on Wednesday, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The revolver has a one-year extension option.

The interest rate is Libor plus 90 basis points to 147.5 bps, and the annual facility fee is 10 bps to 27.5 bps. The exact amounts are based on Allete's then-current senior unsecured credit ratings.

JPMorgan Chase Bank, NA is the administrative agent, and J.P. Morgan Securities LLC is the arranger and bookrunner.

Borrowings may be used by Allete for general corporate purposes, to provide liquidity in support of Allete's commercial paper program and to issue up to $10 million in letters of credit.

The credit agreement has one financial covenant. It caps the company's ratio of total debt to total capitalization at 65%.

Allete is a Duluth, Minn.-based electric company.

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