ENERGY WEST FILES APPLICATIONS FOR APPROVAL OF
MODIFICATIONS TO EXISTING CREDIT FACILITY
GREAT FALLS, Mont., March 1, 2004/PRNewswire-First Call/--ENERGY WEST,
INCORPORATED (NASDAQ: EWST - News) announced today that it has filed
applications with the Montana Public Service Commission and the Wyoming Public
Service Commission seeking approval of proposed modifications to its current $23
million secured revolving credit facility with LaSalle Bank National
Association.
The proposed modifications would involve replacing the current $23 million
credit facility with a $15 million, short-term revolving credit facility, a $6
million, five-year term note, and a $2 million, 180-day bridge loan. The $2
million loan must be repaid within 180 days with the proceeds of a new placement
of equity securities by the Company. The $6 million, five-year term loan would
bear interest (at the Company's option) at either the LaSalle Bank prime rate
plus 150 basis points or the London Interbank Offerred Rate ("LIBOR") plus 350
basis points. The $2 million 180-day bridge loan would bear interest for the
first 90 days at LaSalle's prime rate plus 100 basis points, and for the 91st
day through maturity at LaSalle's prime rate plus 200 basis points. Interest
rates on the $15 million short-term revolving credit facility would be the same
as provided under the Company's current facility with LaSalle Bank.
The new credit facilities would be secured on an equal and ratable basis with
the Company's existing long-term debt, eliminating the requirement under the
present credit facility to restructure the existing long-term debt by March 31,
2004. The new facilities would retain generally the same covenants, including
financial covenants, as the current revolving credit facility. In addition, the
new credit facilities would permit the Company to declare dividends subject to
certain restrictions. Any decision with respect to the timing and amount of
future dividends will be made by the Board of Directors of the Company.
The completion of the modifications to the existing credit facility is subject
to satisfaction of a number of conditions, including agreement by the Company
and LaSalle Bank on the definitive terms of a new credit agreement, satisfaction
of closing conditions, and regulatory approval from the Montana and Wyoming
public service commissions.
The Company's target for completion of the modifications to the current credit
facility is March 31, 2004.
Energy West's Interim President and CEO John C. Allen stated, "The proposed
modifications to our credit facility with LaSalle will represent a further
enhancement of our financial strength and an important step in our effort to
reinstate a cash dividend. The modifications would allow us to fund our seasonal
cash flow requirements, and establish a more logical long-term capital
structure. We continue to be very pleased with our relationship with LaSalle."
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Safe Harbor Forward Looking Statement: Energy West is including the following
cautionary statement in the release to make applicable and to take advantage of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995 for any forward-looking statements made
by, or on behalf of Energy West. Forward-looking statements are all statements
other than statements of historical fact, including without limitation those
that are identified by the use of the words "anticipates," "estimates,"
"expects," "intends," "plans," "predicts," and similar expressions. Such
statements are inherently subject to a variety of risks and uncertainties that
could cause actual results to differ materially from those expressed. Such risks
and uncertainties include, among others, changes in the utility regulatory
environment, wholesale and retail competition, weather conditions, litigation
risk, risks associated with capital requirements, and various other matters,
many of which are beyond Energy West's control. Energy West expressly undertakes
no obligation to update or revise any forward-looking statement contained herein
to reflect any change in Energy West's expectations with regard thereto or any
change in events, conditions, or circumstances on which any such statement is
based.
