The credits for FPL Group Capital and its subsidiary Florida Power & Light were oversubscribed with $4.2 billion of commitments coming across the two deals, according to bankers. Allocations were expected Oct. 10, but could not be ascertained. Salomon Smith Barney andBank of America led the syndication of the FPL Group's $2 billion credit; J.P. Morgan and First Union are the leads on the $1 billion deal for the subsidiary. Banks that signed onto one deal signed onto the other, said a banker. The allocations are likely to be scaled back rather than the deal being enlarged.
Pricing was considered thin, but bankers agreed that the reason to be on the credit was for possible ancillary business (LMW, 9/10). Each loan is divided into 364-day and three-year pieces. Pricing on the $2 billion loan is LIBOR plus 25 basis points with a step-up of 10 basis points if 33% of the loan is drawn and another 10 basis points if drawing reaches 66%. The subsidiary's deal is priced at LIBOR plus 20 basis points with a step-up to 30 basis points and 40 basis points if 33% and 66% is drawn, respectively. The company is rolling up a series of bilateral lines, resulting in an expansion of the bank group. Calls to Robert McGrath, FPL treasurer, were referred to the press office. Pat Davis, a spokeswoman did not return calls.