Merrill Lynch and Credit Suisse First Boston have just finished a series of one-on-one preliminary discussions with key lenders of Northwest Natural Gas for the $2.1 billion loan financing the acquisition of Enron's Portland General Electric utility and CSFB is also preparing to launch a $600 million loan for TECO Power. A banker said the Teco deal is expected to go into primary syndication by year-end, and will be used to refinance the acquisition of Frontera and fund the construction of two plants in Arkansas and Mississippi.
A date for the Northwest syndication could not be ascertained. The Northwest deal will consist of a $100 million revolver, a $150 million "A" term loan, a $500 million "B" term loan, a $300 million term loan "C" and also a $450 million capital markets tranche. At the operating company level Northwest will enter into a new $150 million revolver and Portland a new $300 million revolver (LMW, 10/14). Officials at Merrill Lynch did not return calls.