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NUI to get $95 million credit facility via CSFB
By Sara Rosenberg
New York, July 15 - NUI Corp. received a commitment from an affiliate of Credit Suisse First Boston for an additional $95 million in credit facilities, consisting of a $75 million senior secured credit facility due May 15, 2005 to NUI Utilities and a $20 million senior unsecured credit facility due Nov. 21, 2005 to NUI, according to a company news release.
NUI Utilities' $75 million credit facility is secured by receivables.
Also on Thursday, NUI announced that it has signed a definitive merger agreement with AGL Resources Inc., an investment grade company, for AGL to acquire all of the outstanding shares of common stock of NUI for $13.70 per share in cash, representing a total equity value of approximately $220 million.
"The new facilities are intended to provide NUI and NUI Utilities with additional liquidity through the close of the sale of the company and can be utilized to purchase gas for the upcoming winter heating season and for general corporate purposes," the release said.
The new loan commitments are subject to, among other things, the extension of the existing credit facilities of NUI and NUI Utilities to Nov. 21, 2005, and the amendment of the facilities to allow for the new financing.
Furthermore, approval from the New Jersey Board of Public Utilities and from the lenders under NUI's existing credit facilities will be required to complete the proposed financing.
If the proposed new financing is not completed by Sept. 30, AGL Resources has the right to terminate the merger agreement.
NUI is a Bedminster, N.J. energy company. AGL Resources is an Atlanta-based energy services holding company.
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