Bank of America and FleetBoston Financial have signed on to Bank of Montreal's $500 million credit backing Pogo Producing's acquisition of NORIC Corp.'s North Central Oil, according to an official familiar with the deal. Société Généralé is reportedly considering joining at the same level, the official said. He declined further comment. James Ulm, cfo in Houston, would only say that several banks are going through due diligence and standard credit procedures to make commitments. "The deal just launched last Thursday, and Monday was a holiday. They need time to get back home and do the work," he said. Ulm declined further comment. Bank officials did not return calls seeking comment.
Pogo Producing develops and produces oil and natural gas. The company announced last November it would acquire North Central for $630 million in cash and stock and assume $120 million in debt.
The credit is structured as a five-year, $500 million revolver. Pricing is based on a grid linked to the company's leverage. No other credit details could be ascertained before press time.