Despite the turmoil surrounding Enron, Merrill Lynch and Credit Suisse First Boston are plugging ahead with their $2.1 billion deal for Northwest Natural Gas' acquisition of Portland General Electric and one co-manager is said to have committed. A banker at Merrill described it as business as usual, while a CSFB banker said the Enron situation should not have any adverse impact. He added that six institutions have been approached for top-tier roles and this stage of syndication could be completed by year-end, though he declined to name any of the banks approached, the bank that has committed or disclose the up-front fees on offer.
Portland General Electric is an Enron subsidiary and the beleaguered power-company parent will be the single largest shareholder once the transaction is complete. One banker following the deal said the bankruptcy court will want the sale to go through quickly to help realize asset values, but the caveat in a bankruptcy case is that lawsuits will fly around and some may challenge the value of Northwest. The CSFB banker noted that the bankruptcy trustee will want to get the sale in place as soon as possible to secure the J.P. Morgan, Citicorp DIP, while another banker said that the Oregon public utility is motivated to see the sale through as well. "Enron is not exactly the belle of the ball right now," he said. Repeated calls to the Enron press office were not returned.