By Jennifer Chiou
New York, Jan. 17 - ITC Holdings Corp. detailed its issue of $385 million of senior notes (Baa3/BBB-) that priced on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.
Lehman Brothers Inc. and Credit Suisse Securities (USA) LLC are the joint bookrunners. Banc of America Securities LLC, Comerica Securities, Inc. and J.P. Morgan Securities Inc. are the co-managers.
The 6.05% notes priced at 99.59 to yield 6.105% with a spread of Treasuries plus 240 basis points.
The notes mature on Jan. 31, 2018 and pay interest semiannually. They are being sold to institutional investors under Rule 144A.
There is a make-whole call at Treasuries plus 35 bps.
Proceeds from the offering, according to a previous company statement, will be used to refinance debt used to acquire ITC Midwest LLC, its wholly owned subsidiary. The proceeds will also be used to fund the acquisition of the electric transmission assets of the Interstate Power and Light Co.
ITC, based in Novi, Mich., invests in the electricity transmission grid.
| Issuer: | ITC Holdings Corp.
|
| Issue: | Senior notes
|
| Amount: | $385 million
|
| Maturity: | Jan. 31, 2018
|
| Bookrunners: | Lehman Brothers Inc., Credit Suisse Securities (USA) LLC
|
| Coupon: | 6.05%, payable semiannually
|
| Price: | 99.59
|
| Yield: | 6.105%
|
| Spread: | Treasuries plus 240 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Pricing date: | Jan. 15
|
| Settlement date: | Jan. 24
|
| Distribution: | Rule 144A
|
| Ratings: | Moody's: Baa3
|
| S&P: BBB-
|
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