Can't tell the Cali-Ute bagholders without a scorecard? Here ya go (Hint: BAC and JPM are batting "clean-up")!
01/15 14:43
Bank of America, J.P. Morgan Led $4 Bln in PG&E, Edison Loans
By Michael Nol and Mark Lake
New York, Jan. 15 (Bloomberg) -- Bank of America Corp. and J.P. Morgan Chase & Co. arranged a combined $4.2 billion of loans for two California utilities that are facing bankruptcy, according to Bloomberg data.
Since banks that arrange credit typically retain 10 percent of the loans, the country's two biggest lenders could be on the hook to the power companies for as much as $400 million if the utilities fail to repay their debts, said analysts.
Bank of America and J.P. Morgan Chase are the two biggest lenders to PG&E Corp. and Edison International, which own Pacific Gas & Electric and Southern California Edison, respectively. The utilities, which borrowed more than $11.5 billion to buy power last year, say they could file for bankruptcy by the end of this month because they are paying more for power than they can charge.
``The losses for a handful of banks will be painful,'' if the utilities fail to repay their debts, said Lawrence Cohn, an analyst at Ryan, Beck & Co.
According to Bloomberg data, Bank of America, the No. 2 U.S. business lender, arranged $2.15 billion of loans for Edison, PG&E and their subsidiaries, including a $1 billion loan for PG&E Corp. in October and an $850 million loan to Pacific Gas & Electric in December. The bank also arranged a $300 million loan in May for an Edison International unit, Edison Mission Energy.
Big Lenders
J.P. Morgan Chase, the biggest U.S. lender, led $2.018 billion of loans currently outstanding to the two companies. The bank arranged an $818 million facility to Edison in May, and led $650 million of $1.675 billion in loans to PG&E subsidiary US Generating Co. in 1998. It also arranged a $550 million loan to PG&E Generating Co. in August.
Assuming the utilities have drawn upon all their credit lines, that would give Bank of America about $215 million of exposure to the utilities, and J.P. Morgan Chase about $202 million of exposure.
A spokeswoman from Bank of America and a J.P. Morgan Chase spokesman wouldn't disclose how much exposure their banks had to the utilities.
More Loans
The banks' involvement extends further. Both lent money to Edison and PG&E in loans arranged by other banks. Of 12 outstanding loans to PG&E and its subsidiaries and seven to Edison, J.P. Morgan Chase and Bank of America each participated in six, including the loans they arranged themselves, according to Bloomberg data.
J.P. Morgan Chase was one of eight banks that arranged 830 million pounds ($1.49 billion) for UK Power Lending Ltd., an Edison subsidiary. It also lent money on $1 billion of loans arranged by Bank of America.
J.P. Morgan Chase was unable to line up enough other lenders to complete a $1 billion backup credit line for Southern California Edison last month, according to a Dec. 22 company filing with the Securities & Exchange Commission.
Chase agreed to provide the credit line only if it found other banks to share the risk. When other banks refused to lend, Chase postponed arranging the new line pending the outcome of regulatory hearings in California.
Bank of America participated in $700 million of loans arranged by other banks.
Stocks Drop
Shares of the two banks fell Jan. 5 amid investor concerns the cash crunch the utilities face was deepening. PG&E has $2.21 billion in bills for power due in the next eight weeks -- more than four times its cash reserves. Edison, which plans to cut 1,850 jobs, has more than $4.9 billion in debt from buying power at rising prices that it couldn't pass on to customers.
The skepticism has prompted investor to unload the utilities' publicly traded debt. Prices for PG&E's 7 3/8 notes maturing in November 2005 were being bid at 67 cents to the dollar last week, down from about 100 in early December.
While the utilities' problems have riled investors, the likelihood that they would fail is slim, analysts said.
``The companies have to survive in one form or another,'' said Carl Dorf, once a utilities industry analyst and manager of the Pilgrim America Bank and Thrift fund. ``You can't cut off the electricity.''
California lawmakers are trying to find a way to keep the state's electricity flowing. The state is trying to buy power from energy companies so it can sell it to PG&E and Edison at lower prices than the utilities can get on their own.
Other Lenders
Among other lenders, Societe Generale SA, France's third- largest bank, arranged the biggest loans to the utilities -- two facilities totaling $7.8 billion to PG&E National Energy Group. The bank has very little exposure to the loans, though, because PG&E is required to put up Treasury bonds as collateral each time it draws down the credit line, a Societe Generale spokesman said.
The utility hasn't used any of the line yet, and the bank has about $29 million of exposure to the utilities through other loans, the spokesman said.
Commerzbank AG, Germany's No. 5 bank, helped arrange the loans.
Follwing are the loans outstanding to PG&E, Edison International and their subsidiaries:
Edison International and Subsidiaries
UK POWER LENDING LTD FACILITY: 830.0 Million pounds Maturity: 12/27/12 TRANCHE: 830.0 Million pounds BB NUMBER: LN018250 SPECIAL PURPOSE ENTITY LOAN TYPE: TERM Arranger(s) BANK OF MONTREAL BARCLAYS BANK PLC CHASE MANHATTAN CREDIT LYONNAIS CREDIT SUISSE FIRST BOSTON DRESDNER BANK SOCIETE GENERALE WESTLB Co-Arranger(s) COMMERZBANK AG
EDSION MISSION HOLDINGS CO FACILITY: $1.1 Billion Maturity: 3/18/04 TRANCHE: $250.0 Million BB NUMBER: LN012570 ELECTRIC-GENERATION LOAN TYPE: TERM Arranger(s) CREDIT SUISSE FIRST BOSTON LEHMAN BROTHERS SALOMON SMITH BARNEY SOCIETE GENERALE Administrative Agent(s) CITICORP USA INC Lender(s) CITICORP USA INC CREDIT SUISSE FIRST BOSTON LEHMAN COMMERCIAL PAPER SOCIETE GENERALE
EDSION MISSION HOLDINGS CO FACILITY: $1.1 Billion Maturity: 3/18/04 TRANCHE: $50.0 Million BB NUMBER: LN012568 ELECTRIC-GENERATION LOAN TYPE: REVOLVER Arranger(s) CREDIT SUISSE FIRST BOSTON LEHMAN BROTHERS SALOMON SMITH BARNEY SOCIETE GENERALE Administrative Agent(s) CITICORP USA INC Lender(s) CITICORP USA INC CREDIT SUISSE FIRST BOSTON LEHMAN COMMERCIAL PAPER SOCIETE GENERALE
EME FINANCE UK LIMITED FACILITY: 359.2 Million pounds Maturity: 1/16/04 TRANCHE: 136.2 Million pounds BB NUMBER: LN020451 ELECTRIC-INTEGRATED LOAN TYPE: TERM Agent(s) BARCLAYS BANK PLC (US) Arranger(s) BARCLAYS CAPITAL CREDIT SUISSE FIRST BOSTON Lenders: BANK OF MONTREAL 6.67% BANKGESELLSCHAFT BERLIN AG 6.67 BARCLAYS CAPITAL 6.67 BAYERISCHE HYPOTHEKENBANK 6.67 BAYERISCHE LANDESBANK (UK) 6.67 CREDIT LYONNAIS (US) 6.67 CREDIT SUISSE FIRST BOSTON CORP. 6.67 DEXIA PROJECT & PUBLIC FINANCE INT 6.67 DRESDNER BANK AG 6.67 GOVERNOR AND CO BANK OF SCOTLAND 6.67 ING BANK N.V. 6.67 KBC BANK NV 6.67 ROYAL BANK OF SCOTLAND PLC (US) 6.67 SOCIETE GENERALE 6.67 TORONTO DOMINION BANK 6.67
EME FINANCE UK LIMITED FACILITY: 359.2 Million pounds Maturity: 7/16/04 TRANCHE: 223.0 Million pounds BB NUMBER: LN020447 ELECTRIC-INTEGRATED LOAN TYPE: TERM Agent(s): BARCLAYS BANK PLC (US) Arranger(s): BARCLAYS CAPITAL
CREDIT SUISSE FIRST BOSTON Lenders: BANK OF MONTREAL 6.67% BANKGESELLSCHAFT BERLIN AG 6.67 BARCLAYS CAPITAL 6.67 BAYERISCHE HYPOTHEKENBANK 6.67 BAYERISCHE LANDESBANK (UK) 6.67 CREDIT LYONNAIS (US) 6.67 CREDIT SUISSE FIRST BOSTON CORP. 6.67 DEXIA PROJECT & PUBLIC FINANCE INT 6.67 DRESDNER BANK AG 6.67 GOVERNOR AND CO BANK OF SCOTLAND 6.67 ING BANK NV 6.67 KBC BANK NV 6.67 ROYAL BANK OF SCOTLAND PLC (US) 6.67 SOCIETE GENERALE 6.67 TORONTO DOMINION BANK 6.67
EDISON MISSION ENERGY FACILITY: NZ$400.0 Million Maturity: 6/23/03 TRANCHE: NZ$160.0 Million BB NUMBER: LN015164 ELECTRIC-GENERATION LOAN TYPE: TERM Agent(s): CREDIT SUISSE FIRST BOSTON Arranger(s): CREDIT SUISSE FIRST BOSTON
EDISON INTERNATIONAL FACILITY: $818.0 Million Maturity: 5/16/01 TRANCHE: $818.0 Million BB NUMBER: LN024957 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Administrative Agent(s): CHASE MANHATTAN Book Manager: CHASE SECURITIES, INC.
EDISON MISSION ENERGY FACILITY: $700.0 Million Maturity: 3/16/01 TRANCHE: $700.0 Million BB NUMBER: LN022474 ELECTRIC-GENERATION LOAN TYPE: REVOLVER Agent(s): SG COWEN SECURITIES CORP
WESTDEUTSCHE LANDESBANK Arranger(s): SOCIETE GENERALE Administrative Agent(s): CITIBANK NA Lead Arranger: SALOMON SMITH BARNEY
EDISON MISSION ENERGY FACILITY: $300.0 Million Maturity: 5/29/01 TRANCHE: $300.0 Million BB NUMBER: LN028015 ELECTRIC-GENERATION LOAN TYPE: REVOLVER Administrative Agent(s): BANK OF AMERICA NA Lead Arranger: BANC OF AMERICA SECURITIES LLC Book Manager: BANC OF AMERICA SECURITIES LLC
PG&E Corp. and Subsidiaries
PG&E NATIONAL ENERGY GROUP FACILITY: $4.2 Billion Maturity: 10/06/08 TRANCHE: $4.2 Billion BB NUMBER: LN034990 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Documentation Agent(s): DRESDNER (SOUTH EAST ASIA) Syndication Agent(s): ABN AMRO BANK (US) Administrative Agent(s): SOCIETE GENERALE Co-Agent(s): COMMERZBANK AG Lead Arranger: SOCIETE GENERALE Co-Arranger(s): COMMERZBANK AG Book Manager: SOCIETE GENERALE
PG&E NATIONAL ENERGY GROUP FACILITY: $3.6 Billion Maturity: 9/08/08 TRANCHE: $3.6 Billion BB NUMBER: LN034992 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Documentation Agent(s): FUJI BANK LIMITED Syndication Agent(s): TD SECURITIES Administrative Agent(s): SOCIETE GENERALE Co-Agent(s): COMMERZBANK AG Lead Arranger: SOCIETE GENERALE Co-Arranger(s): COMMERZBANK AG Book Manager: SOCIETE GENERALE
US GENERATING CO LLC FACILITY: $1.1 Billion Maturity: 8/31/03 TRANCHE: $550.0 Million BB NUMBER: LN009169 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Administrative Agent(s): CHASE MANHATTAN
PG&E CORPORATION FACILITY: $1.0 Billion Maturity: 12/18/01 TRANCHE: $600.0 Million BB NUMBER: LN032435 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Syndication Agent(s): CHASE MANHATTAN Administrative Agent(s): BANK OF AMERICA NA Lead Arranger: BANC OF AMERICA SECURITIES LLC Book Manager: BANC OF AMERICA SECURITIES LLC
PG&E CORPORATION FACILITY: $1.0 Billion Maturity: 10/17/01 TRANCHE: $400.0 Million BB NUMBER: LN032437 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Syndication Agent(s): CHASE MANHATTAN
CITIBANK NA Administrative Agent(s): BANK OF AMERICA NA Lead Arranger: BANC OF AMERICA SECURITIES LLC Book Manager: BANC OF AMERICA SECURITIES LLC
PACIFIC GAS & ELECTRIC CO FACILITY: $850.0 Million Maturity: 11/30/01 TRANCHE: $850.0 Million BB NUMBER: LN034962 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Administrative Agent(s): BANK OF AMERICA NA Lead Arranger: BANC OF AMERICA SECURITIES LLC Book Manager: BANC OF AMERICA SECURITIES LLC
USGEN NEW ENGLAND INC FACILITY: $575.0 Million Maturity: 8/31/03 TRANCHE: $100.0 Million BB NUMBER: LN009173 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Administrative Agent(s): CHASE MANHATTAN
PG&E GENERATING CO FACILITY: $550.0 Million Maturity: 8/24/01 TRANCHE: $550.0 Million BB NUMBER: LN029280 ENERGY-ALTERNATE SOURCES LOAN TYPE: REVOLVER Syndication Agent(s): BANK OF AMERICA NA Administrative Agent(s): CHASE MANHATTAN Lead Arranger: CHASE SECURITIES, INC. Book Manager: CHASE SECURITIES, INC.
LAKE ROAD GENERATING COMPANY FACILITY: $489.4 Million Maturity: 8/31/17 TRANCHE: $489.4 Million BB NUMBER: LN016949 SPECIAL PURPOSE ENTITY LOAN TYPE: TERM Arranger(s): DEUTSCHE BANC ALEX BROWN
SOCIETE GENERALE Syndication Agent(s): SOCIETE GENERALE Administrative Agent(s): CITIBANK NA
LAKE ROAD GENERATING COMPANY FACILITY: $227.0 Million Maturity: 8/28/01 TRANCHE: $227.0 Million BB NUMBER: LN029683 SPECIAL PURPOSE ENTITY LOAN TYPE: REVOLVER Administrative Agent(s): CITIBANK NA Lead Arranger: SALOMON SMITH BARNEY Co-Documentation Agent(s): DEUTSCHE BANK (US)
SOCIETE GENERALE Sr. Managing Agent(s): BANK OF NOVA SCOTIA (US)
CREDIT AGRICOLE INDOSUEZ
CREDIT LYONNAIS (US)
DIVISAS & VALORES SA SAB
DRESDNER BANK (US)
FORTIS CAPITAL CORP
NORDDEUTSCHE LANDESBANK GZ
UNION BANK OF CALIFORNIA
PACIFIC GAS & ELECTRIC CO FACILITY: $203.0 MM Maturity: 4/30/01 TRANCHE: $203.0 MM BB NUMBER: LN024616 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Documentation Agent(s): BARCLAYS BANK PLC (US) Syndication Agent(s): CREDIT AGRICOLE INDOSUEZ Administrative Agent(s): BANK ONE NA Co-Agent(s): CREDIT LYONNAIS (US) Book Manager: BANK ONE NA
PG&E GAS TRANSMISSION NORTHW FACILITY: $100.0 Million Maturity: 5/30/02 TRANCHE: $100.0 Million BB NUMBER: LN014923 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Arranger(s): CIBC WORLD MARKETS Documentation Agent(s): FIRST NATIONAL BANK OF CHICAGO Syndication Agent(s): US BANK NA Administrative Agent(s): CANADIAN IMPERIAL BANK OF COMMERCE Co-Agent(s): BARCLAYS BANK PLC (US)
FIRST NATIONAL BANK OF CHICAGO
US BANK NA Lenders: BANK OF AMERICA NA 8.94% BARCLAYS BANK PLC (US) 14.57 CIBC INC 17.22 CITICORP NA 11.92 FIRST NATIONAL BANK OF CHICAGO 17.22 FUJI BANK LIMITED 6.62 UBS AG 8.94 US BANK NA 14.57
PG&E GAS TRANSMISSION NORTHW FACILITY: $50.0 Million Maturity: 5/21/02 TRANCHE: $50.0 Million BB NUMBER: LN014925 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER/TERM Arranger(s) CIBC WORLD MARKETS Documentation Agent FIRST NATIONAL BANK OF CHICAGO Syndication Agent US BANK NA Administrative Agent CIBC BANK Co-Agent(s) BARCLAYS BANK PLC (US)
FIRST NATIONAL BANK OF CHICAGO
US BANK NA Lenders: BANK OF AMERICA NA 8.94%
BARCLAYS BANK PLC (US) 14.57
CIBC INC 17.22
CITICORP NA 11.92
FIRST NATIONAL BANK OF CHICAGO 17.22
FUJI BANK LIMITED 6.62
UBS AG 8.94
US BANK NA 14.57
PG&E GAS TRANSMISSION NORTHW FACILITY: $50.0 Million Maturity: 5/18/01 TRANCHE: $50.0 Million BB NUMBER: LN024735 ELECTRIC-INTEGRATED LOAN TYPE: REVOLVER Documentation Agent: BANK ONE NA Administrative Agent: CITIBANK NA Co-Agent: BARCLAYS BANK PLC (US) Lead Arranger: SALOMON SMITH BARNEY |
