Puget Energy details $2.425 billion credit facility for buyout by consortium

By Sara Rosenberg

New York, Dec. 31 - Puget Energy Inc. released details on its proposed up to $2.425 billion senior secured credit facility that will be obtained in connection with its buyout by a consortium of long-term infrastructure investors, according to a PREM14A filed with the Securities and Exchange Commission.

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

The facility consists of up to $1.425 billion in senior secured term loans and an up to $1 billion senior secured capital expenditure facility.

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.

Also, in connection with the transaction, Puget Sound Energy Inc., a utility company, will be getting an up to $1.15 billion credit facility consisting, of an up to $400 million senior unsecured capital expenditure facility, a $350 million senior unsecured energy hedging facility and a $400 million senior unsecured liquidity facility.

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.

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

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