Chase Manhattan Closes Credit Facilities for Ocean Energy and Alaska Communications

Strategic Insights -

Chase Manhattan has recently concluded two notable credit deals, providing a significant financial boost to Ocean Energy Inc. and Alaska Communications. The credit facilities, which consist of a combination of revolving and term loans, aim to support the restructuring efforts of both companies. In a separate development, Ocean Energy is poised to complete the sale of its Canadian subsidiary to Quintana Minerals Canada Corp. for $74 million, which will further help the company reduce its debt burden.

Key Takeaways:

  • Chase Manhattan closed a $800 million credit facility for Ocean Energy Inc., comprising a 364-day $300 million revolver and a five-year $500 million A-term loan, priced at Libor plus 150 basis points.
  • The credit facility will be used to support Ocean Energy's merger with Seagull Energy Corp.
  • Ocean Energy is selling its Canadian subsidiary to Quintana Minerals Canada Corp. for $74 million, expected to be completed in April.
  • The sale will help reduce Ocean Energy's debt burden.
  • Chase Manhattan also closed a $535 million credit facility for Alaska Communications, comprising multiple tranches with varying terms and pricing structures.
  • The facility for Alaska Communications comprises a seven-year $75 million revolver, a 7.5-year $150 million A-term loan, an 8.5-year $150 million B-term loan, and a nine-year $160 million C-term loan.
  • CIBC Oppenheimer is the syndication agent, and Credit Suisse First Boston is the documentation agent for the Alaska Communications deal.
  • Chase Manhattan's credit facilities demonstrate the financial support available to companies undergoing significant restructuring efforts.

Statistics:

  • $800 million: The total amount of the credit facility provided to Ocean Energy Inc.
  • $300 million: The size of the 364-day revolver component of the Ocean Energy credit facility.
  • $500 million: The size of the 5-year A-term loan component of the Ocean Energy credit facility.
  • Libor plus 150 basis points: The pricing structure for the Ocean Energy credit facility.
  • $74 million: The sale price of Ocean Energy's Canadian subsidiary to Quintana Minerals Canada Corp.
  • $535 million: The total amount of the credit facility provided to Alaska Communications.
  • Seven years: The term of the $75 million revolver component of the Alaska Communications credit facility.
  • 7.5 years: The term of the $150 million A-term loan component of the Alaska Communications credit facility.
  • 8.5 years: The term of the $150 million B-term loan component of the Alaska Communications credit facility.
  • 9 years: The term of the $160 million C-term loan component of the Alaska Communications credit facility.

Sources:

  • "N.P. Market Warms Up To Alaska" - Original article, no date specified.
  • "Chase Manhattan has closed general syndication on its $800 million credit facility for Ocean Energy Inc." - Original article, no date specified.
  • "Chase Manhattan has closed general syndication on its $535 million credit facility for Alaska Communications." - Original article, no date specified.