Oncor Electric Delivery Company LLC Files Form 8-K on May 17, 2021

On May 17, 2021, Oncor Electric Delivery Company LLC filed a Form 8-K with the United States Securities and Exchange Commission, reporting on its financial obligations and credit arrangement. The filing disclosed the creation of a direct financial obligation through the Term Loan Credit Agreement with Wells Fargo Bank, National Association, as administrative agent. Oncor borrowed the entire $450 million aggregate principal amount available under the Term Loan Agreement, with $185 million borrowed in March and April 2021, and the remaining $175 million borrowed on May 14, 2021. The company intends to use the proceeds for general corporate purposes, including repayment of outstanding commercial paper notes.

Key Takeaways:

• Oncor Electric Delivery Company LLC entered into a Term Loan Credit Agreement with Wells Fargo Bank, National Association, on March 17, 2021.
• The Term Loan Agreement provides for a term loan credit facility in an aggregate principal amount of up to $450 million.
• Oncor borrowed $170 million in March 2021, $105 million in April 2021, and $175 million on May 14, 2021, utilizing the entire available amount under the credit facility.
• The loan bears interest at a per annum rate of LIBOR plus 0.65% or an alternate base rate, at Oncor's option.
• The company intends to use the proceeds from the loan for general corporate purposes, including repayment of outstanding commercial paper notes.
• The Term Loan Agreement matures on May 17, 2022.
• Oncor has an option to make up to four borrowings under the Term Loan Agreement, with the last borrowing to be made on or before June 4, 2021.

Statistics:

• Aggregate principal amount available under the Term Loan Agreement: $450 million
• Amount borrowed through the Term Loan Agreement in March 2021: $170 million
• Amount borrowed through the Term Loan Agreement in April 2021: $105 million
• Amount borrowed through the Term Loan Agreement on May 14, 2021: $175 million
• Total amount borrowed under the Term Loan Agreement: $450 million
• Maturity date of the Term Loan Agreement: May 17, 2022
• Option to make up to four borrowings under the Term Loan Agreement: yes
• Remaining option to borrow under the Term Loan Agreement: June 4, 2021

Sources:

• Securities and Exchange Commission, Form 8-K Current Report (May 17, 2021) [File Reference: 333-100240]
• Wells Fargo Bank, National Association, Term Loan Credit Agreement (March 17, 2021) [Exhibit 10.1 to Form 8-K]