Vulcan Energy $175 million term B to launch Feb. 23 week

By Sara Rosenberg

New York, Feb. 20 - Vulcan Energy Corp. is expected to hold a bank meeting some time during the Feb. 23 week for a proposed $175 million term loan B, according to a market source. Fleet is the sole lead arranger on the deal.

The B loan is talked at Libor plus 350 basis points, the source added.

Proceeds will be used to help fund the acquisition of Plains Resources Inc. with Vulcan Capital as equity sponsor. Under the transaction agreement, shareholders of Plains Resources, other than chairman James C. Flores and chief executive officer and president John T. Raymond (who together with the affiliate of Vulcan Capital form the Vulcan Group), will receive $16.75 per share in cash, according to a company news release.

Closing of the acquisition, which is expected to occur during the second quarter of 2004, is subject to approval by the shareholders of Plains Resources and other customary closing conditions.

Plains Resources is a Houston independent energy company.

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