Constellation tries to float $2 billion loan
From Reuters.
NEW YORK (Reuters) - The Royal Bank of Scotland and UBS have begun syndicating a critical $2 billion liquidity facility for Constellation Energy Group, sources told Reuters Loan Pricing Corp.Constellation Energy (CEG.N: Quote, Profile, Research, Stock Buzz) is currently subject of a takeover play by Warren Buffett's MidAmerican Energy Holdings and a potential joint bid by KKR and French utility EDF.
The loan is one of the few deals testing bank appetite in a generally frozen loan market. Constellation, which is under capital and financing pressure due to commodity and counterparty risk, is offering rich premiums to entice banks to support its facility, sources added.
With a 'BBB' rating profile, Constellation's financing is seen as key to the survival of its commodity trading business.
Comments
I have been against the sale of CEG since its inception and I plan a NO vote with my shares when the prospectus arrives. I think the officers and board were too hasty in the sale and the amount of money that Shattuck would get is an abomination. If this whole thing can be worked out and the company remain viable and independent I will raise my voice to have Shattack and the Board removed.
Posted by: Reader | October 14, 2008 8:00 PM
A simple question Jay, what if the sale of CEG is not approved by the stockholders?
I have a few shares and intend to vote against the merger. I know the story and have read your articles but I still feel the whole deal was done in haste and Shattuck and the board ran scared.
Oh and Shattuck and the board should be replaced if the deal is killed.
Posted by: reader | October 21, 2008 7:43 PM
A simple question Jay, what if the sale of CEG is not approved by the stockholders?
I have a few shares and intend to vote against the merger. I know the story and have read your articles but I still feel the whole deal was done in haste and Shattuck and the board ran scared.
Oh and Shattuck and the board should be replaced if the deal is killed.
Posted by: reader | October 21, 2008 7:43 PM