ETT Announces Successful Closing of Debt Private Placement
AUSTIN, Texas, Feb. 26 /PRNewswire-FirstCall/ -- Electric Transmission Texas LLC (ETT) announced today that it has successfully closed $225 million Senior Unsecured Notes in its inaugural debt private placement via Citi and RBS. ETT is a joint venture between subsidiaries of American Electric Power (NYSE: AEP) and MidAmerican Energy Holdings Company.
The company will use the funds to repay debt drawn on ETT's credit facility, as well as for capital expenditures and general corporate purposes.
Calvin Crowder, ETT president, said, "This is an excellent outcome as it fulfils our strategic objective of diversifying the sources of debt, as well as substantially lengthening the average tenure of our debt at historically attractive interest rates.
"To have priced $225 million of long-term funding from a broad range of sophisticated institutional investors is a strong endorsement of the business model of ETT. These funds further support the company's significant investment plans toward transmission facilities that strengthen the Texas market and provide benefits to our customers."
ETT acquires, constructs, owns and operates transmission facilities within the Electric Reliability Council of Texas (ERCOT), primarily in and around the AEP Texas Central Company (TCC) and AEP Texas North Company (TNC) service territories.
American Electric Power, headquartered in Columbus, Ohio, is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP (www.aep.com) has extensive experience building extra-high-voltage 765-kV transmission lines and owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes 2,100 miles of 765-kV transmission lines, more than all other U.S. transmission systems combined.
MidAmerican Energy Holdings Company (www.midamerican.com), based in Des Moines, Iowa, is a global provider of energy services to more than 6.9 million customers worldwide. MidAmerican Energy Holdings Company subsidiaries, PacifiCorp and MidAmerican Energy Company, own and operate more than 18,000 miles of electric transmission lines.
SOURCE Electric Transmission Texas LLC
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