‘Incremental Tranche’ Feature Provides Additional Flexibility and Liquidity
OMAHA, Neb. – Tenaska Marketing Ventures (TMV) today completed renewal of a four-year secured revolving line of credit that provides the company with up to $1.5 billion of borrowing capacity. TMV, a top 10 natural gas marketer in North America, is an affiliate of Tenaska, one of the largest independent energy companies in the United States.
TMV’s line of credit was established in 2006 and renewed in 2010. This renewal extends the facility that would have matured on July 29, 2014. TMV will use the renewed credit facility to continue financing natural gas inventory and trading liquidity.
The credit facility has an “incremental tranche” feature that is new to Tenaska and to energy commodity financing facilities. This feature gives TMV the flexibility to quickly add committed capacity to increase financial liquidity as needed.
“The extension of this facility to 2018 conveys to our suppliers and customers that TMV’s risk philosophy remains the same and that TMV will continue to have direct access to liquidity to fully back all of its obligations secured by Tenaska guaranties,” said John Obermiller, Tenaska Marketing Group chief financial officer. “TMV is well positioned to support current operations and the anticipated continued growth of the company while maintaining the highest levels of customer service and financial security well into the future.”
Lead arrangers for the credit facility were BNP Paribas Securities, Corp.; Bank of Tokyo-Mitsubishi UFJ, Ltd.; SG Americas Securities, LLC; Natixis; and Cooperatieve Centrale Raiffeisen Boerenleenbank B.A., “Rabobank Nederland.” BNP Paribas Securities, Bank of Tokyo-Mitsubishi UFJ and SG Americas Securities were joint bookrunners.
“The interest in TMV’s credit facility and its favorable terms are recognition of Tenaska’s 27-year history of financial strength and controls, as well as TMV’s natural gas marketing expertise,” Obermiller added.
About Tenaska Marketing Ventures
Tenaska Marketing Ventures (TMV) is an affiliate of Omaha, Neb.-based energy company Tenaska, one of the leading independent power producers in the U.S. Forbes magazine consistently ranks Tenaska among the largest privately held U.S. companies. TMV offers tailored solutions to meet wholesale customers’ needs for natural gas buying and selling, price hedging, asset management and supply-and-demand swing management. In addition to being ranked as one of the top 10 natural gas marketers in North America by Platt’s Gas Daily, TMV is No. 1 in the nation in natural gas pipeline capacity release trading. TMV also has been rated in the top five for value and loyalty since 2007 by customers responding to a Mastio & Company survey.
Tenaska has developed and constructed approximately 9,000 megawatts (MW) of electric generating capacity. Tenaska and its affiliates manage approximately 11,000 MW of power generation consisting of 15 power plants, eight of which are owned by Tenaska in partnership with other companies and seven of which are private equity investments managed by affiliate Tenaska Capital Management, LLC. Tenaska affiliates also market electric power and biofuels and related agriculture commodities, and are involved in private equity and acquisition management; fuel supply; natural gas exploration, production and transportation systems; and electric transmission development. To learn more about Tenaska or TMV, visit www.tenaska.com.