First Choice Power obtains $125 million revolver via Fleet

By Sara Rosenberg

New York, Aug. 28 - First Choice Power, a subsidiary of TNP Enterprises Inc., has received a commitment from Fleet Capital Corp. for a $125 million three-year secured revolver.

Proceeds will be used for working capital requirements, which are currently being met through a credit facility that expires Oct. 30, 2003.

The company anticipates closing on the facility by the end of September.

Meanwhile, TNP is expected to close on a $42 million add-on and maturity extension through Dec. 31, 2006 to its existing term loan by the end of this week. CIBC World Markets Corp. is the lead bank on the deal.

"TNP requested an increase in the amount of the loan in order to provide working capital, while replacing an existing revolving credit facility, and to provide First Choice Power with additional capital," a news release said.

First Choice Power is a retail electric provider serving electricity consumers in Texas. TNP Enterprises is a Fort Worth, Tex. holding company for Texas-New Mexico Power Co. and First Choice Power.

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