Mississippi Power borrows $900 million, can borrow $300 million more

By Angela McDaniels

Tacoma, Wash., March 9 – Mississippi Power Co. entered into a $1.2 billion term loan agreement on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.

The company borrowed $900 million at closing and has until Oct. 15, 2016 to borrow the remaining $300 million.

The loans mature on April 1, 2018.

The interest rate is Libor plus 150 basis points. The unused fee for the undrawn commitments is 17.5 bps.

Proceeds will be used to repay existing debt and for other general corporate purposes.

The term loan agreement includes a requirement that the company’s ratio of consolidated debt to capitalization be 0.65 to 1 or less.

Bank of America, NA is the administrative agent.

Gulfport, Miss.-based Mississippi Power distributes and sells electricity.

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