On Oct. 15, 2004, Standard&Poor's Ratings Services assigned its 'B-' rating to Aquila Inc.'s (B-/Negative/--) $220 million senior unsecured term loan credit facility and $110 million senior unsecured revolving credit facility. The two facilities have initial interest rates of LIBOR plus a spread of 5.75%. A portion of the net proceeds was used toward refinancing Aquila's $430 million secured term loan due April 2006. As a result, the collateral securing the $430 million three-year term loan, including Aquila's utility assets in Colorado, Iowa, Michigan, and Nebraska, has been released. The outlook is negative. Kansas City, Mo.-based energy provider Aquila has about $2.7 billion of debt. The ratings reflect the company's marginal credit measures and insufficient cash flow from
