Houston-based Newfield Exploration is in the market with a $300 million, three-year credit facility to help fund the $333 million purchase price of Lariat Petroleum. The balance of the deal will be financed with stock. J.P. Morgan Chase and Bank of America are lead arrangers on the credit. Susan Riggs, treasurer, said she expects the facility to close oversubscribed in the next couple of weeks. "There are currently nine banks in the syndicate, but we expect more," she said.
Riggs confirmed a banker's prediction that pricing on the credit is expected at roughly LIBOR plus 11Ž 4%. "It's not definite but that's what we are looking at right now," she said. Riggs explained the new facility will replace an existing $225 million, three-year facility with J.P. Morgan Chase the company signed in 1997. She said the facility will have covenants tied to leverage ratios. Newfield is a natural gas production and exploration company.