Transwestern Pipeline has tapped Wachovia to lead its $550 million refinancing facility. The bank meeting, originally scheduled for last week, was cancelled and the deal is now said to be launching this week. It could not be determined why the meeting was delayed. But one buysider suggested the delay was caused by scheduling conflicts. The facility comprises a four-year, $150 million revolver and five-year, $400 million term loan. Price talk on the revolver and term loan is LIBOR plus 21/2% and LIBOR plus 3%, respectively.
Transwestern is a subsidiary of Enron that was not a part of the bankruptcy process. One buysider said he is interested in the facility because pipelines are generally good assets. "It's not something that's really going to degrade in value," he added. A Transwestern spokeswoman and a Wachovia spokeswoman declined comment as to why the meeting was rescheduled.