Puget Energy to get at least $2.15 billion credit facility with buyout by consortium

By Sara Rosenberg

New York, Oct. 26 - Puget Energy Inc. plans on getting an at least $2.15 billion credit facility in connection with its buyout by a consortium of long-term infrastructure investors, according to a news release.

Barclays Capital and Dresdner Kleinwort are the lead banks on the deal.

Proceeds will be used to help fund the company's capital expenditure program and working capital needs and support energy hedging activities upon closing of the transaction.

Puget is being acquired by Macquarie Infrastructure Partners, the Canada Pension Plan Investment Board and British Columbia Investment Management Corp., and the consortium also includes Alberta Investment Management, Macquarie-FSS Infrastructure Trust and Macquarie Bank Ltd.

The consortium is paying $30.00 per share in cash for the company and will assume $3.2 billion of Puget Energy redeemable securities and outstanding debt obligations. The transaction has an enterprise value of $7.4 billion.

At completion, the transaction will be funded as follows - $3.2 billion in shareholder capital provided by the consortium, $1.6 billion of newly issued debt at the holding company level and $2.6 billion of existing debt.

Closing is expected to occur during the second half of 2008, subject to approval by Puget Energy's shareholders and certain regulatory approvals, including those from the Washington Utilities and Transportation Commission and the Federal Energy Regulatory Commission.

There is a "go shop" period until Dec. 10.

Puget Energy is a Bellevue, Wash., provider of electric and natural gas service.

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