Wachovia Securities is coming to market with a $550 million refinancing for Transwestern Pipeline Co. after a three-month delay caused by Enron's court case. Transwestern is a subsidiary of Enron that was not a part of the bankruptcy process. It could not be determined why the court case delayed Transwestern's bank meeting, which was originally scheduled for early January. "I think they've got those issues resolved," one loan investor noted.
The facility comprises a $150 million revolver and $400 million term loan. The revolver is priced at LIBOR plus 21/2% and is subject to a grid. The term loan pricing will be determined at closing based on the rating at that time. Pricing will be LIBOR plus 3% for a BB-/Ba3 rating, LIBOR plus 23/4% for a BB/Ba2 rating and LIBOR plus 21/2% for a BB+/Ba1 rating. A Transwestern spokeswoman declined comment and Wachovia bankers did not return calls.