Aquila Completes Refinancing.Business Editors KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--April 11, 2003 Aquila, Inc. (NYSE NYSE See: New York Stock Exchange :ILA ILA abbr. insulinlike activity ) announced today that it has completed a new financing agreement that replaces its short-term credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . The package consists of two secured loan facilities -- a one-year $200 million loan to UtiliCorp Australia, Inc. and a $430 million three-year term loan to Aquila. The initial amount drawn under the one-year loan will be $100 million, and the company will have an option to draw another $100 million within the next 30 days. The one-year loan is non-recourse to Aquila, Inc. "Completing this financing package is a key component of the overall plan we've been pursuing to achieve financial stability and return Aquila to its regulated utility roots," said Rick Dobson, Aquila's interim chief financial officer. "We clearly have more work ahead, but with this financing in place, plus our existing cash and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , the company should have sufficient liquidity to execute the remainder of its restructuring plan." Proceeds from the loan package will be used to terminate the company's existing 364-day senior bank facility, repay synthetic leases Synthetic Lease An operating lease that is structured in a way so that it is not recorded as a liability on the balance sheet. Instead, it is considered to be an expense on the income statement. associated with two power plants in Illinois, and cash collateralized outstanding letters of credit. Initial interest rates on the loans are 7 percent for the one-year loan and 8.75 percent for the three-year term loan. Collateral for the one-year loan includes the company's interests in its Australian investments, interests in its portfolio of U.S.-based independent power plants and two nonregulated power plants in Illinois. Collateral for the three-year term loan will include a combination of the company's non-regulated and regulated utility assets. Later this month Aquila will initiate regulatory proceedings to secure the three-year loan with additional U.S.-based regulated utility assets. Upon regulatory approval, the interest rate on the three-year loan will be reduced to 8.00 percent. Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. served as the sole arranger for the new loans. Additional details on the refinancing will be discussed when Aquila reviews its 2002 fourth-quarter and year-end results during a webcast scheduled for April 15 at 9:00 a.m. Eastern. Based in Kansas City, Missouri Kansas City is the largest city in the state of Missouri. It encompasses parts of Jackson, Clay, Cass, and Platte counties and is the anchor city of the Kansas City Metropolitan Area, the second largest in Missouri, which includes counties in both Missouri and Kansas. , Aquila operates electricity and natural gas distribution networks, serving customers in seven states and in Canada, Australia and the United Kingdom. The company also owns and operates power generation assets. More information is available at www.aquila.com. |
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