Midwest Generation in-market with $250 million revolver, plans to reprice B loan after close

By Sara Rosenberg

New York, March 3 - Midwest Generation LLC is in-market with a $250 million five-year revolving credit facility that is only being offered to private lenders, according to a market source. Citibank and Credit Suisse First Boston are the joint lead arrangers on the deal, with Citigroup the left lead.

The revolver, which was launched via a conference call on Wednesday, is talked at Libor plus 225 basis points with a 50 basis point commitment fee.

At close, the company plans to draw down approximately all $250 million under the revolver and use $50 million of cash on hand to repay about $300 million of term loan B debt, the source said. The revolver borrowings will then be repaid using proceeds from an equity infusion.

After the paydown, the Chicago electric company's term loan B will be sized around $345 million. This $345 million of term loan B debt will then be repriced at a lower interest rate, the source explained.

The company's existing revolver that is also being refinanced through this deal is sized at $200 million. At year-end 2004, there were no borrowings drawn under this revolver.

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