IDACORP has refinanced and aligned maturities on a total of $710 million in credit facilities held by the parent company and its Idaho Power subsidiary. The new deal cuts the size of the three-year credit by $20 million and gives the company flexibility in determining what it needs in 364-day lines, said Darrel Anderson, v.p., cfo and treasurer. "We believe from a cost perspective it gives us the flexibility to reassess our needs," he said of the refinancing. "We didn't feel we needed to carry $500 million on a three-year level."
The company extended the maturities on the former credits until mid April to prepare for the new deal. IDACORP's former credits included a $50 million, three-year revolver originally set to mature in December 2001 and a $375 million, 364-day revolver set to mature in February. Idaho Power's former credits included $120 million, three-year revolver set to mature in December 2001 and a $165 million, 364-day revolver expiring April 26. The new facility comprises a $350 million, 364-day revolver and a $140 million, three-year revolver held at the IDACORP level, and a $200 million, 364-day revolver held by Idaho Power. Both of the new 364-day revolvers mature in March of next year and the three-year facility matures in March 2005.
The credit was structured so that the company could have consistent access to a base level of need and have year-by-year flexibility on other finance needs. The company determined it needed $140 million for three years, and the remaining $550 million in 364-day credit facilities will be used for liquidity back up and can be upsized or downsized on an annual basis as the company's needs change.
Anderson declined to disclose information on its exact pricing change, but did note increased pressure on energy companies led to a price rise. He attributes the success of the deal to lead banks BANK ONE andBank of America.