InfraREIT issues $500 million in senior secured notes

Written By: Stratton Report
December 3, 2015

infrareit

On December 3, InfraREIT, Inc. announced the issuance of $400 million in 10-year senior secured notes, Series A, due Dec. 3, 2025 and the issuance of $100 million in 10-year senior secured notes, Series B, due Jan. 14, 2026 by its subsidiary, Sharyland Distribution & Transmission Services, L.L.C.

Both issues were private placements. The Series A Notes and Series B Notes bear interest at a rate of 3.86 percent, payable semi-annually. According to the company, the closing of the issuance of the Series A Notes occurred on December 3, while closing of the Series B Notes issuance is expected to close on Jan. 14, 2016.

SDTS intends to use the proceeds from the private placement of the Series A Notes and Series B Notes to refinance the outstanding $388.7 million term loan borrowings under the Senior Secured Credit Facility of its wholly owned subsidiary, Sharyland Projects, L.L.C., due in 2018.

InfraREIT is a real estate investment trust that owns rate-regulated electric transmission and distribution assets in the state of Texas.