Gaz Métro enters into new $600 million credit agreement

-A A +A

Gaz Métro enters into new $600 million credit agreement

Mon, 03/05/2012 - 5:26am -- tim

The owner of Green Mountain Power and Vermont Gas Systems has secured a new line of financing. Gaz Métro inc (GMi) has announced that it has entered into a new credit agreement with its bank syndicate providing for a $600 million secured revolving credit facility which will mature on March 2, 2017.
The new credit facility, which replaces the $400 million credit facility originally put in place on December 21, 2004, is guaranteed by Gaz Métro Limited Partnership (Gaz Métro) and is comprised of a revolving loan available to GMi and a swingline loan available to GMi and Gaz Métro. Besides the $200 million increase in the size of the facility and the extended maturity, the terms of the new credit agreement are substantially similar to the agreement previously in place. The new credit facility is also secured by collateral security backed by the assets of GMi and Gaz Métro.
Overview of Valener, Gaz Métro and GMi
Valener owns an economic interest of approximately 29 percent in Gaz Métro. Valener therefore has a stake in the energy industry and benefits from Gaz Métro's diversified profile, both in terms of geography and business segment. Valener also owns a 24.5  percent indirect interest in the wind power projects jointly developed with Gaz Métro and Boralex Inc. on the private lands of Séminaire de Québec. Valener may also pursue its own development projects and acquisition strategies subject to a non-competition agreement in favour of Gaz Métro and to applicable limitations under its credit facility. Valener's common shares are listed on the Toronto Stock Exchange under the "VNR" trading symbol. www.valener.com.
With over $3.7 billion in assets, Gaz Métro is Quebec's leading natural gas distributor. Its 10,000 kilometre network serves 300 municipalities. Gaz Métro has operated in this regulated industry since 1957 and is the trusted energy provider of its customers in Quebec and Vermont, who choose natural gas for its competitive price, efficiency, comfort and environmental benefits. Gaz Métro is also present in the electricity distribution market, natural gas transportation and storage, the development of innovative energy projects such as wind power, natural gas as fuel for the transportation industry and biomethanation. Gaz Métro is committed to the satisfaction of its customers, Partners (Gaz Métro inc. and Valener Inc.), employees and the communities it serves. www.gazmetro.com
GMi mainly holds an economic interest of approximately 71 percent in Gaz Métro, for which it acts as the General Partner and a financing vehicle. Gaz Metro is in the process of buying Central Vermont Public Service and merging it into Green Mountain Power. The $702 million deal is expected to be completed this spring. 
SOURCE VALENER INC.  MONTREAL, March 2, 2012 /PRNewswire/ -