SPOKANE, Wash., April 6 /PRNewswire-FirstCall/ -- Avista Corp. today announced that it has renegotiated its committed line of credit agreement with various banks. The amended line of credit captures lower bank fees and borrowing costs and extends the term of the agreement until 2011. The amended credit line was over-subscribed, with banks pledging in excess of $400 million to the line of credit. However, the company chose to reduce the credit facility from $350 million to $320 million based on forecasted liquidity needs. The committed line of credit was originally entered into on December 17, 2004, with an expiration date of December 16, 2009. The amended line of credit agreement expires on April 5, 2011.
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"We are extremely pleased to be able to take advantage of the favorable borrowing rates in the market at this time," said Malyn Malquist, Avista Corp. senior vice president and chief financial officer. "We believe this demonstrates recognition by our banks that Avista continues to make progress in restoring its financial health. The renegotiated lower borrowing rate on our credit line will provide continued financial flexibility going forward."
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides service to 338,000 electric and 297,000 natural gas customers in three western states. Avista's non-regulated subsidiaries include Avista Advantage (http://www.avistaadvantage.com/) and Avista Energy (http://www.avistaenergy.com/). Avista Corp.'s stock is traded under the ticker symbol "AVA." For more information about Avista, please visit http://www.avistacorp.com/.
NOTE: Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.
This news release contains forward-looking statements, including statements regarding forecasted liquidity needs and future financial flexibility. Such statements are subject to a variety of risks, uncertainties and other factors, most of which are beyond the company's control, and many of which could have a significant impact on the company's operations, results of operations and financial condition, and could cause actual results to differ materially from those anticipated.
For a further discussion of these factors and other important factors, please refer to the company's Annual Report on Form 10-K for the year ended Dec. 31, 2005. The forward-looking statements contained in this news release speak only as of the date hereof. The company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the company's business or the extent to which any such factor, or combination of factors, may cause actual results to differ materially from those contained in any forward- looking statement.
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