LAS VEGAS, Oct. 25, 2004 (PRNewswire-FirstCall) — Sierra Pacific Resources announced that its electric utility subsidiary, Nevada Power Company, has increased its revolving credit facility to $350 million from the $250 million announced earlier this month. The company also said that its other utility, Sierra Pacific Power Company, finalized a $75 million revolving credit facility on Friday, October 22, 2004.
Michael Yackira, executive vice president and chief financial officer of Sierra Pacific Resources, said, “We are very pleased with the overwhelming response from the banks who participated in the syndication of these revolving credit facilities, not only allowing us to close on the facilities, but providing us with the capability in the case of Nevada Power to amend and restate the Credit Agreement that was entered into on October 8, 2004, and increase the facility by $100 million. This additional $100 million at Nevada Power and the $75 million revolver at Sierra Pacific Power are replacing more costly synthetic credit facilities that were completed earlier this year.”
Yackira added, “These developments are indicative of our company’s improved financial condition.” He noted that Moody’s Investors Service earlier this week changed its ratings outlook for Sierra Pacific Resources and both of its utilities from “negative” to “stable.”
As previously announced, Nevada Power used part of its revolving credit facility to help finance the purchase of its recently acquired 1,200-megawatt natural gas-fired combined cycle power plant — the Chuck Lenzie Generating Station — still under construction and located in the Moapa Valley near Las Vegas. Nevada Power currently has $150 million outstanding under this revolving credit facility.
Sierra Pacific Power will use borrowings under its new $75 million revolving credit facility for general corporate purposes.
Union Bank of California N.A. served as sole lead arranger for both facilities which included a syndicate of 19 banks.
About Sierra Pacific Resources
Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.