Nevada Power ups revolver size; Sierra Pacific gets new $75 million revolver

By Sara Rosenberg

New York, Oct. 25 - Nevada Power Co. amended and restated its revolving credit facility, increasing the size to $350 million from $250 million, according to an 8-K filed with the Securities and Exchange Commission Monday.

Sierra Pacific Power Co. closed on a new $75 million revolver on Friday with an initial interest rate of Libor plus 200 basis points. The revolver, which was undrawn at closing, is available for general corporate purposes.

Sierra Pacific's revolver contains two financial maintenance covenants - a ratio of consolidated debt to consolidated capital not to exceed 0.68-to-1 and a ratio of consolidated cash flow to consolidated interest expense not to be less than 2.0-to-1, the filing said.

Union Bank of California is the administrative agent on both Nevada Power's and Sierra Pacific's loans.

Nevada Power terminated its previous $100 million synthetic revolving credit facility, which was obtained on May 4, once the amendment became effective Friday. No amounts were outstanding under this facility at the time of termination.

Sierra terminated its previously $50 million synthetic revolving credit facility, which was obtained on May 4, once it closed on the new revolver. No amounts were outstanding under this facility at the time of termination.

Nevada Power currently has $150 million outstanding under its amended and restated revolver.

"We are very pleased with the overwhelming response from the banks who participated in the syndication of these revolving credit facilities, not only allowing us to close on the facilities, but providing us with the capability in the case of Nevada Power to amend and restate the credit agreement that was entered into on Oct. 8 and increase the facility by $100 million," Sierra executive vice president and chief financial officer Michael Yackira said in a company news release.

"These developments are indicative of our company's improved financial condition," Yackira added in the release, pointing out that Moody's Investors Service recently changed its outlook for Sierra Pacific Resources and both of its utilities to stable from negative.

Nevada Power is a Las Vegas electric utility subsidiary of Sierra Pacific Resources, a Reno, Nev., energy company.

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