Inergy to use revolver borrowings for short-term funding of Stagecoach acquisition

By Sara Rosenberg

New York, July 11 - Inergy LP plans on using borrowings under its revolving credit facility to initially fund the $205 million purchase price of the Stagecoach natural gas storage facility located in Tioga County, N.Y., company officials said in a conference call Monday.

However, the company plans on financing the acquisition with longer-term capital through a combination of equity and debt issuances.

Inergy currently has two revolvers - a $75 million working capital facility and a $350 million (upsized from $250 million) acquisition revolver under which approximately $92 million is drawn, officials said in the call.

"There's plenty of capacity right now for this transaction," officials added in the call.

The acquisition is expected to close in the first part of August.

Inergy is a Kansas City, Mo., retail marketer, seller and distributor of propane.

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