NV Energy gets $195 million three-year term loan, locks it in at 2.81%

By Susanna Moon

Chicago, Oct. 7 - NV Energy, Inc. closed a $195 million three-year term loan Friday with JPMorgan Chase Bank, NA as administrative agent and lender, according to an 8-K filing with the Securities and Exchange Commission.

Interest is currently Libor plus 200 basis points, based on the company's rating by Standard & Poor's and Moody's Investors Service.

NV Energy has entered into an interest rate swap agreement to lock the rate at 2.81% for the length of the loan.

Proceeds will be used to retire all of the company's $191.5 million outstanding 6¾% senior notes due Aug. 15, 2017.

PNC Bank, NA is a lender and co-documentation agent; U.S. Bank NA is a lender and co-documentation agent; and J.P. Morgan Securities LLC is the lead arranger and bookrunner.

The term loan is an unsecured single-draw loan due on Oct. 7, 2014.

Financial covenants include maintaining a ratio of total consolidated debt to total consolidated capitalization of 0.7 times and a fixed charge covenant that requires the company not to permit the fixed charge coverage ratio to be less than 1.5 times. Both will be set on the last day of each fiscal quarter.

Debt under the term loan may be accelerated upon an event of default, including cross-default to other debt of more than $35 million.

NV Energy is a Las Vegas-based holding company whose principal subsidiaries, Nevada Power Co. and Sierra Pacific Power Co., provide energy services and do business as NV Energy.

© 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.