ITC Holdings Corp. (NYSE:ITC) Files An 8-K Entry into a Material Definitive Agreement

ITC Holdings Corp. (NYSE:ITC) Files An 8-K Entry into a Material Definitive Agreement
Item 2.03. Entry Into a Material Definitive Agreement

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Issuance of International Transmission Company Bonds, SeriesG

On March29, 2018,International Transmission Company (“ITCTransmission”), a wholly-owned subsidiary of ITC Holdings Corp. (the “Company”), issued $225,000,000 aggregate principal amount of its 4.00% First Mortgage Bonds, SeriesG, due 2053 (the “Bonds”) in a private placement in reliance on an exemption from registration under the Securities Act of 1933 (the “Securities Act”). The Bonds were sold by ITCTransmission to accredited investors (as defined by Rule501(a)of the Securities Act) to a Bond Purchase Agreement dated March29, 2018 (the “Purchase Agreement”). ITCTransmission agreed to sell the Bonds subject to the satisfaction of certain terms and conditions provided in the Purchase Agreement.

The Bonds were issued under ITCTransmission’s First Mortgage and Deed of Trust (the “Mortgage Indenture”), dated as of July15, 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 Seventh Supplemental Indenture thereto, dated as of March14, 2018, between ITCTransmission and the Trustee (the “Seventh Supplemental Indenture” and, together with the Mortgage Indenture, the “Indenture”). The 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 Bonds is payable semi-annually on March30 and September30 of each year, commencing on September30, 2018, at a fixed rate of 4.00% per annum. ITCTransmission may redeem the 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 10 nor more than 60 days’ prior notice at a redemption price equal to the sum of (a)50% of the principal amount of such 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 Bonds in whole on or after September30, 2052 at a redemption price equal to the principal amount of the Bonds plus accrued and unpaid interest thereon to the redemption date. The principal amount of the Bonds is payable on March30, 2053.

The 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 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 Seventh Supplemental Indenture, a copy of which is attached to this Current Report on Form8-K as Exhibit4.1, and the Mortgage Indenture, filed with the Company’s Registration Statement on FormS-1, as amended, filed May10, 2005 as Exhibit4.5, each of which is incorporated herein by reference.

This Current Report on Form8-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 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 2.03 of this Current Report on Form8-K is incorporated herein by reference.

ITC Holdings Corp. Exhibit
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About ITC Holdings Corp. (NYSE:ITC)

ITC Holdings Corp. (ITC Holdings) is a holding company. The Company is engaged in owning, operating, maintaining and investing in transmission infrastructure. The Company’s business consists primarily of the electric transmission operations of its Regulated Operating Subsidiaries. Its Regulated Operating Subsidiaries include International Transmission Company (ITCTransmission), Michigan Electric Transmission Company, LLC (METC), ITC Midwest LLC (ITC Midwest). The operations performed by its Regulated Operating Subsidiaries fall into the various categories, such as asset planning; engineering, design and construction; maintenance, and real time operations. Its customers include investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers. It owns and operates high-voltage systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma.

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