Allegheny lender call Thursday for rollover of term B and C into one large term loan at lower rate

By Sara Rosenberg

New York, Oct. 12 - Allegheny Energy Supply Co. LLC is scheduled to hold a lender call Thursday to launch an amendment to its credit facility that would combine its existing term loan B and term loan C into one large term loan with lower pricing, according to a market source. Citigroup is the lead bank on the deal.

The new term loan B would be sized at $1.044 billion with pricing of Libor plus 275 basis points. After closing on the amendment, once the company pays down $200 million of the new tranche using cash flow, net cash proceeds from asset sales or net cash proceeds from the issuance of equity, pricing will step down to Libor plus 250 basis points, the source said.

Currently, the company has a total of $1.244 billion of term B and term C debt, with the term B priced at Libor plus 300 basis points and the term C priced at Libor plus 425 basis points. The $200 million that is not being refinanced under the amendment is being paid down using $50 million of cash and $150 million of equity proceeds raised by parent company Allegheny Energy Inc., the source added.

Allegheny Energy Supply is Greensburg, Pa., owner and operator of electric generating facilities.

© 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.