Bank One, Barclays Capital, Union Bank of California, Bank of New York and ABN AMRO have signed on as co-documentation agents on the $2.1 billion loan backing Northwest Natural Gas' purchase of Portland General Electric. Each bank has committed $200 million. The credit, led by Merrill Lynch and Credit Suisse First Boston, was pitched last week to managing agents and $100 million pieces are being offered, said a banker. The credit consists of a $100 million, six-year revolver and a $300 million six-year "A" term loan, both priced at LIBOR plus 2 3/4 %. A $500 million seven-and-a-half year term loan "B" is priced at LIBOR plus 3 1/4 % and a $300 million term loan "C" at LIBOR plus 3 1/2 %. The "B" and "C" loans will come to market in the second quarter, the banker said.
Additionally, there is a $450 million capital-markets facility in the form of a loan that will become a senior unsecured note, a separate $300 million revolver for Portland and a $150 million revolver for Northwest. Merrill and CSFB have also received four commitments from banks for the utility company revolvers. The banker declined to name the banks.