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Note: Utilities, generation and midstream companies are looking to refinance more than $50 billion dollars of revolving credit facilities coming due in the next three years, facing steeper pricing, shorter tenors and less market capacity.
Utilities, generation and midstream companies are looking to refinance more than $50 billion dollars of revolving credit facilities coming due in the next three years, facing steeper pricing, shorter tenors and less market capacity. "These companies got into these very cheap credit agreements years ago and now they're looking at half the commitment for twice the price," says Sharon Bonelli, managing director of utilities, power and gas at Fitch Ratings in New York.
Pricing on new revolvers is starting at 300-350 basis points over LIBOR, up from 50-100 bps, notes a banker familiar with the transactions, adding that lenders are only going out to two years on these deals...