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These excerpts taken from the ITC 10-K filed Feb 29, 2008. ITC Holdings
Bridge Facility
ITC Holdings received a commitment letter, dated
January 18, 2007, from a bank (the “Lead
Arranger”) to provide to ITC Holdings, subject to the terms
and conditions therein, financing in an aggregate amount of up
to $765.0 million in the form of a
364-day
senior unsecured bridge facility. ITC Holdings paid a fee of
0.125% per annum, which accrued beginning on August 1, 2007
through the ITC Midwest acquisition date of December 20,
2007 (the “Ticking Fee”). The Ticking Fee of
$0.4 million was recorded in other expense. Additionally,
ITC Holdings paid a funding fee equal to 0.375% of the aggregate
amount of the loans borrowed (the “Funding Fee”) and
an arrangement fee of 0.125% on the aggregate amount of the
Bridge Facility (the “Arrangement Fee”). The
Arrangement Fee amount was recorded as a debt issue cost and
amortized over the expected term of the Bridge Facility. The
Funding Fee was rebated
Table of Contents
ITC HOLDINGS
CORP. AND SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
in full in January 2008 as a result of the Bridge Facility being
refinanced with the Lead Arranger within the specified time
period, and was applied as a reduction to the issuance costs of
the ITC Midwest acquisition financings. The borrowings under the
Bridge Facility accrued interest at 5.56% and total interest
expense recognized in 2007 was $1.4 million. The proceeds
from the Bridge Facility were used to finance a significant
portion of the ITC Midwest acquisition.
We classified the outstanding balance of the Bridge Facility as
long-term debt because we have demonstrated our ability to
refinance the Bridge Facility with long-term permanent
financing. In January 2008, we repaid in full all amounts
outstanding under the Bridge Facility using the proceeds of ITC
Holdings’ $385.0 million Senior Notes, ITC
Midwest’s $175.0 million First Mortgage Bonds,
Series A and the issuance of 6,420,737 shares of ITC
Holdings’ common stock for proceeds of $308.3 million
net of underwriting discount. The terms of the ITC Holdings
Senior Notes and ITC Midwest First Mortgage Bonds are discussed
below.
ITC Holdings Bridge Facility ITC Holdings received a commitment letter, dated January 18, 2007, from a bank (the “Lead Arranger”) to provide to ITC Holdings, subject to the terms and conditions therein, financing in an aggregate amount of up to $765.0 million in the form of a 364-day senior unsecured bridge facility. ITC Holdings paid a fee of 0.125% per annum, which accrued beginning on August 1, 2007 through the ITC Midwest acquisition date of December 20, 2007 (the “Ticking Fee”). The Ticking Fee of $0.4 million was recorded in other expense. Additionally, ITC Holdings paid a funding fee equal to 0.375% of the aggregate amount of the loans borrowed (the “Funding Fee”) and an arrangement fee of 0.125% on the aggregate amount of the Bridge Facility (the “Arrangement Fee”). The Arrangement Fee amount was recorded as a debt issue cost and amortized over the expected term of the Bridge Facility. The Funding Fee was rebated
Table of ContentsITC HOLDINGS CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) in full in January 2008 as a result of the Bridge Facility being refinanced with the Lead Arranger within the specified time period, and was applied as a reduction to the issuance costs of the ITC Midwest acquisition financings. The borrowings under the Bridge Facility accrued interest at 5.56% and total interest expense recognized in 2007 was $1.4 million. The proceeds from the Bridge Facility were used to finance a significant portion of the ITC Midwest acquisition. We classified the outstanding balance of the Bridge Facility as long-term debt because we have demonstrated our ability to refinance the Bridge Facility with long-term permanent financing. In January 2008, we repaid in full all amounts outstanding under the Bridge Facility using the proceeds of ITC Holdings’ $385.0 million Senior Notes, ITC Midwest’s $175.0 million First Mortgage Bonds, Series A and the issuance of 6,420,737 shares of ITC Holdings’ common stock for proceeds of $308.3 million net of underwriting discount. The terms of the ITC Holdings Senior Notes and ITC Midwest First Mortgage Bonds are discussed below. | EXCERPTS ON THIS PAGE:
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