Power companies get $800 mil. loan

Bank of America is providing a $60 million line of credit to Sierra Pacific Resources, parent company of the combined Nevada Power and Sierra Pacific Power companies.

The B of A credit line is part of an $800 million bank syndicated loan provided by 15 financial institutions. Bank officials say this credit line represents one of the largest non-gaming deals B of A has ever financed in Nevada. Bank of America is joined by First Union, Wells Fargo, and Mellon Bank as managing agents in the transaction.

B of A spokesman Paul Stowell said Sierra Pacific will use the loan for the dual purposes of capital payments related to the recent merger with Nevada Power, as well as credit requests made by the two power companies prior to the announced merger.

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