The Trust and El Paso Electric will pay interest on the notes, as applicable, on February 15 and August 15 of each year until maturity, beginning on February 15, 2019. The notes may be redeemed, in whole or in part, at any time at a redemption price equal to 100% of the principal amount to be redeemed plus a make-whole amount.
El Paso Electric will guarantee the payment of principal and interest on the notes issued by the Trust. Both the sale of the notes and the guarantee by El Paso Electric of the notes issued by the Trust were made in reliance on a private placement exemption from registration under the Securities Act of 1933, as amended.
The proceeds from the notes issued by the Trust will primarily be used to repay outstanding short-term borrowings under the revolving credit facility (the “RCF”) to finance nuclear fuel purchases. The proceeds from the notes issued by El Paso Electric will primarily be used to repay outstanding short-term borrowings under the RCF and for working capital and general corporate purposes.
El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 418,000 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico.
Baker Botts Lawyers/Office Involved:
Corporate: Tim Taylor (Partner, Houston); Carina Antweil (Senior Associate, Houston) and Emmie Proctor (Associate, Houston)
Finance: Rachael Lichman (Partner, Houston) and Josh Espinosa (Associate, Dallas)
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