Consolidated Natural Gas has wrapped up a $500 million, 364-day revolver and has cut back allocations because of strong demand. The company, subsidiary of Richmond, Va.-based Dominion, cruised through the market despite broader energy market negativity.
A market official said the credit, led by Barclays Capital, drew in some 19 banks and allocations at the $50 million tier had to be cut to $40 million. The strong nature of the credit combined with high up-front fees, were the key drivers behind the demand, he added. He declined to reveal the fees, but said the facility has fully drawn pricing of 67.5 over LIBOR and has no term out provision.
Bankers at Barclays declined comment and Dominion officials were unable to provide comment by press time. The loan replaces two current facilities and is Barclays' first lead role for CNG, said a banker.