Western Resources obtains $735 million credit facility

By Sara Rosenberg

New York, June 6 - Western Resources said it obtained a $735 million secured credit facility, consisting of a $585 million term loan and a $150 million revolver, undrawn at closing. Both the term and the revolver mature on June 6, 2005. JPMorgan Securities Inc. arranged the financing.

"With the closing of this bank transaction and the $765 million bond offering in May, the company has completed the refinancing of approximately $1.5 billion of its debt," said Paul R. Geist, senior vice president and chief financial officer, in a news release. "As with the earlier bond offering, we are extremely pleased with our continued access to the credit markets and the participation of many blue chip financial institutions in our refinancings."

Proceeds of the term loan were used to retire an existing revolver due March 2003 with outstanding borrowings of $380 million. In addition, proceeds are being used to repay at maturity $135 million first mortgage bonds due Dec. 2003, to repurchase about $45 million outstanding unsecured notes and to pay fees and expenses of the transaction, the release said.

Western Resources is a Topeka, Kan. consumer service company.

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