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ITC > SEC Filings for ITC > Form 8-K on 10-Jun-2014All Recent SEC Filings

Show all filings for ITC HOLDINGS CORP.



Entry into a Material Definitive Agreement, Creation of a Direct Financial Obl

Item 1.01. Entry Into a Material Definitive Agreement

Issuance of International Transmission Company Bonds, Series F

On June 10, 2014, International Transmission Company ("ITCTransmission"), a wholly-owned subsidiary of ITC Holdings Corp. (the "Company"), issued $75,000,000 aggregate principal amount of its 4.27% First Mortgage Bonds, Series F, due 2044 (the "June Bonds") in a private placement in reliance on an exemption from registration under the Securities Act of 1933 (the "Securities Act"). The June Bonds were sold by ITCTransmission to accredited investors (as defined by Rule 501(a) of the Securities Act) pursuant to a Bond Purchase Agreement dated June 10, 2014 (the "Purchase Agreement"). Under the Purchase Agreement, ITCTransmission also agreed to issue an additional $25,000,000 aggregate principal amount of 4.27% First Mortgage Bonds, Series F, due 2044 on August 22, 2014. ITCTransmission agreed to sell the June Bonds subject to the satisfaction of certain terms and conditions provided in the Purchase Agreement.

The June Bonds were issued under ITCTransmission's First Mortgage and Deed of Trust (the "Mortgage Indenture"), dated as of July 15, 2003, between ITCTransmission and The Bank of New York Mellon Trust Company, N.A., as successor to BNY Midwest Trust Company, as trustee (the "Trustee"), as supplemented by the Sixth Supplemental Indenture thereto, dated as of May 23, 2014, between ITCTransmission and the Trustee (the "Sixth Supplemental Indenture" and, together with the Mortgage Indenture, the "Indenture"). The June Bonds are secured by a first mortgage lien on substantially all of ITCTransmission's real and tangible personal property equally with all other securities theretofore or thereafter issued under the Mortgage Indenture, with such exceptions as described in, and such releases as permitted by, the Indenture.

Interest on the June Bonds is payable semi-annually on June 10 and December 10 of each year, commencing on December 10, 2014, at a fixed rate of 4.27% per annum. ITCTransmission may redeem the June Bonds, in whole or in part, in an amount not less than $5,000,000 in aggregate principal amount in the case of a partial redemption, at any time or from time to time with not less than 30 nor more than 60 days' prior notice at a redemption price equal to the sum of
(a) 100% of the principal amount of such June Bonds, (b) accrued and unpaid interest thereon to the redemption date and (c) a make-whole amount, if any, determined using a discount rate of treasuries plus 50 basis points. ITCTransmission may also redeem the June Bonds in whole on or after December 10, 2043 at a redemption price equal to the principal amount of the June Bonds plus accrued and unpaid interest thereon to the redemption date. The principal amount of the June Bonds is payable on June 10, 2044.

The June Bonds and the Indenture contain events of default customary for such a transaction, including, without limitation, failure to pay interest on any Security (as defined in the Indenture) for 30 days after becoming due; failure to pay principal on any Security when due; failure to comply with material covenants contained in the Indenture, subject to a 30-day cure period; failure to comply with other covenants contained in the Indenture and the other financing agreements relating to the offering of the June Bonds, subject to a 60-day cure period; breaches of representations and warranties; defaults in respect of obligations relating to certain debt; certain unsatisfied judgments; certain pension plan events; and certain events relating to reorganization, bankruptcy and insolvency of ITCTransmission. If an "Event of Default" (as defined in the Indenture) occurs and is continuing, the Trustee or the holders of not less than 25% in principal amount of the Securities then outstanding may declare the principal amount of all the Securities to be immediately due and payable.

The above description of the Indenture does not purport to be a complete statement of the parties' rights and obligations thereunder. Such description is qualified in its entirety by reference to the Sixth Supplemental Indenture, a copy of which is attached to this Current Report on Form 8-K as Exhibit 4.1, and the Mortgage Indenture, filed with the Company's Current Report 8-K filed February 1, 2008 as Exhibit 4.19, each of which is incorporated herein by reference.

This Current Report on Form 8-K does not constitute an offer to sell nor a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. The June Bonds will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant

The information set forth above under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

4.1 Sixth Supplemental Indenture, dated as of May 23, 2014, between International Transmission Company and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company), as trustee

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