Inergy increased its credit facility from $200 million to $300 million in order to provide the company with access to capital, according to Mike Campbell, corporate finance manager with the propane marketing and distribution company. In January, the company retired about $85 million of senior secured privately placed notes and issued about $85 million of equity at the same time. "This effectively is one of the next legs in our capital restructuring that positions us to continue our acquisition strategy," Campbell said, explaining the timing behind the new transaction.
The credit comprises a $225 million revolving acquisition facility and a $75 million working capital revolver. Presently, $113 million is outstanding under the facility. Wachovia Securities leads the facility. Bank of Oklahoma andBank of America are syndication agents, while Bank One and U.S. Bank serve as documentation agents. Inergy was previously in the market last October with a $175 million refinancing. This was increased during syndication to $200 million (LMW, 10/20). At that time the credit priced at LIBOR plus 2%, with a 3/8% undrawn fee. Campbell declined to disclose the new spread, but said it is very similar to the previous one.