BNP Paribas, Others Arrange $1.5B Tenaska Marketing Revolver
Tenaska Marketing Ventures announced it completed renewal of a four-year secured revolving line of credit that provides the company with up to $1.5 billion of borrowing capacity.
Lead arrangers for the credit facility were BNP Paribas Securities, Bank of Tokyo-Mitsubishi, SG Americas Securities, Natixis and Cooperatieve Centrale Raiffeisen Boerenleenbank. BNP Paribas Securities, Bank of Tokyo-Mitsubishi UFJ and SG Americas Securities were joint bookrunners.
TMV’s line of credit was established in 2006 and renewed in 2010. This renewal extends the facility that would have matured on July 29, 2014. TMV will use the renewed credit facility to continue financing natural gas inventory and trading liquidity.
The facility has an “incremental tranche” feature that is new to Tenaska and to energy commodity financing facilities. This feature gives TMV the flexibility to quickly add committed capacity to increase financial liquidity as needed.
“The extension of this facility to 2018 conveys to our suppliers and customers that TMV’s risk philosophy remains the same and that TMV will continue to have direct access to liquidity to fully back all of its obligations secured by Tenaska guaranties,” said John Obermiller, chief financial officer at Tenaska. “TMV is well positioned to support current operations and the anticipated continued growth of the company while maintaining the highest levels of customer service and financial security well into the future.”
“The interest in TMV’s credit facility and its favorable terms are recognition of Tenaska’s 27-year history of financial strength and controls, as well as TMV’s natural gas marketing expertise,” Obermiller added.
TMV is a natural gas marketer and affiliate of Tenaska, an independent energy company in the US.