Aquila $300 million credit facility to launch Wednesday

By Sara Rosenberg

New York, Sept. 3 - Aquila Inc. is scheduled to launch its $300 million unsecured working capital facility on Wednesday. The deal is expected to primarily go out to existing lenders, according to a market source. Credit Suisse First Boston is the lead bank on the deal.

As was previously reported, the facility consists of a $100 million revolving credit facility and a $200 million term loan.

Price talk of Libor plus 575 basis points surfaced on both tranches Friday, the source said. The revolver, which is expected to be basically undrawn at closing, will also have a 100 basis point commitment fee.

Proceeds will be used to help retire Aquila's existing $430 million secured credit facility, a move that will reduce outstanding debt by about $230 million and lower annual interest expense.

The deal is expected to close Sept. 16.

Aquila is a Kansas City, Mo., operator of electricity and natural gas distribution utilities and owner of power generation assets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.