ITC Holdings (ITC)

 

Year Ended December 31, 2008 compared to Year Ended December 31, 2007

 

Net cash provided by financing activities decreased $667.5 million in 2008 compared to 2007. The decrease in cash provided by financing activities was due primarily to the 2007 issuance of the $765.0 million ITC Holdings Bridge Facility used to temporarily finance ITC Midwest’s asset acquisition, a net decrease in borrowings under our revolving credit facilities of $129.3 million during 2008 as compared to 2007, the 2007 issuance by ITCTransmission of its $100.0 million First Mortgage Bonds, Series C and an additional $10.8 million of dividend payments during 2008 as compared to 2007. These decreases in cash provided by financing activities were partially offset by $101.2 million of additional permanent financing in excess of the amounts redeemed in full under the ITC Holdings Bridge Facility in January 2008, $13.3 million of additional net proceeds associated with refundable deposits for transmission network upgrades and $224.9 million of proceeds from the 2008 issuances of ITCTransmission’s First Mortgage Bonds, Series D, METC’s Senior Secured Notes and ITC Midwest’s First Mortgage Bonds, Series B and Series C.

 

Year Ended December 31, 2007 compared to Year Ended December 31, 2006

 

Net cash provided by financing activities increased due to the 2007 issuances of $100.0 million of ITC Holdings’ Senior Notes, Series A and Series B and the $765.0 million ITC Holdings Bridge Facility. Cash from financing activities also increased due to the net increase in borrowings of $165.8 million under our revolving credit facilities in 2007 compared to 2006 and the redemption or repayment of $123.5 million of long-term debt in 2006. These increases were partially offset by proceeds from the financings in 2006 associated with the METC acquisition, including the issuance of $510.0 million of ITC Holdings’ Senior Notes and the offering of common shares of $200.5 million (net of underwriters discount and other offering fees). Additionally in 2006, ITCTransmission issued $100.0 million of First Mortgage Bonds to finance investments in property, plant and equipment. The increases were also offset by an increase in dividends paid on common stock of $9.9 million due primarily to the increase in outstanding common shares in 2007 as compared to 2006 and, to a lesser extent, an increase in the dividend rate per share during 2007.

 

Year Ended December 31, 2006 compared to Year Ended December 31, 2005

 

The increase was due primarily to proceeds from the issuance of $510.0 million of ITC Holdings’ Senior Notes and proceeds from an offering of common shares of $200.5 million to finance the METC acquisition.

 

Year Ended December 31, 2006 compared to Year Ended December 31, 2005

 

The increase was due primarily to proceeds from the issuance of $510.0 million of ITC Holdings Senior Notes and proceeds from an offering of common shares of $200.5 million to finance the METC Acquisition.

 

Additionally, ITCTransmission issued $100.0 million of First Mortgage Bonds to finance investments in property, plant and equipment.

 

These increases were partially offset by the redemption of $90.0 million of MTH Senior Secured Notes, the repayment of amounts borrowed under our revolving credit facilities, the repayment of $28.1 million of outstanding principal and interest obligations to IPPs and higher dividend payments during 2006.

 

Year Ended December 31, 2005 compared to Year Ended December 31, 2004

 

The increase was primarily due to proceeds of $53.9 million (net of the underwriting discount) received from ITC Holdings’ initial public offering less issuance costs of $7.1 million partially offset by 2005 dividend payments on common stock of $17.4 million.

 

ITCTransmission had $66.3 million and $25.0 million outstanding under its revolving credit facility at December 31, 2005 and 2004, respectively.

 

ITC Holdings had no amounts outstanding under its revolving credit facility as of December 31, 2005 and had borrowings of $7.5 million under its revolving credit facility at December 31, 2004.