Consol Energy's CNX Gas obtains $200 million credit facility

New York, Oct. 13 - Consol Energy Inc. said its 81.5% owned subsidiary CNX Gas Corp. obtained a new $200 million revolving credit facility.

The loan is via PNC Bank, NA and Citibank, NA as administrative agents.

CNX can request an increase to $300 million. Availability is set by a borrowing base.

Proceeds can be used for general corporate purposes.

As part of the transaction, the inter-company revolver with Consol Energy dated Aug. 1 was terminated.

Consol Energy will be asking holders of its 7 7/8% notes due 2012 to approve an amendment removing CNX as guarantors of the notes and allowing them to make unsecured borrowings.

Interest on the loan is Libor plus a margin of 100 to 175 basis, depending on the amount outstanding.

The facility matures on Oct. 7, 2010.

Consol Energy is a Pittsburgh-based energy producer and energy services provider.

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