Inergy plans new $300 million term loan, clubs up deal with banks

By Sara Rosenberg

New York, Jan. 19 - Inergy LP is getting a new $300 million term loan that has been clubbed up with banks, according to a market source.

JPMorgan is the left lead bank on the deal.

Proceeds from the loan, along with $750 million of senior unsecured notes, will be used to fund a partial redemption on Feb. 4 of $78.75 million of 8¾% senior notes due 2015 and to fund a tender offer for $425 million of 6 7/8% senior notes due 2014, $146.25 million of the notes due 2015 and $400 million of 8¼% senior notes due 2016.

Any remaining net proceeds will be used to repay outstanding borrowings under the company's general partnership revolver and its working capital revolver as well as for additional working capital.

Inergy is a Kansas City, Mo.-based master limited partnership with operations that include the retail marketing, sale and distribution of propane.

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