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Merrillville, Ind.-base NiSource has landed lender approval to increase its letter of credit capacity from $150 million to $500 million under a $1.25 billion term-loan for its liquidity needs. One financier says the amendment was passed without much fuss by the 27 banks in the deal. NiSource has been able to demonstrate financial solidity through a $735 million equity issue toward the end of last year and it also decided not renew an expiring revolver. The term loan is led by Barclays Capital, which handled the passage of the amendment (PFR, 3/24).

Aquila is upscaling its foray into the B loan market, finding sufficient demand to upsize the deal from the $530 million at launch to $630 million, according to financiers.

Endesa bonds have rallied sharply over the past few weeks, cheered primarily by healthy news flow from its embattled Chilean operations. Liquidity issues in Latin America are being resolved and the bond market's responding positively, explains one trader. He notes three-year Endesa paper was trading at a 45 basis point spread over swaps last week, 30 basis points tighter than early last month

Pepco Holdings, a Washington-based utility holding company, is looking to issue $700 million of bonds in the near future to refinance commercial paper. The company has yet to mandate underwriters for the issue, says CFO Andrew Williams. The utility holding company filed a $700 million universal shelf registration with the Securities and Exchange Commission last Monday.

International Power and its group of bank creditors are looking to restructure a roughly GBP160 million ($251 million) mini-perm loan that financed the London-based independent power producer's acquisition of the 1,000 MW Rugeley coal-fired plant in 2001. The Lincolnshire, U.K., power plant and its non-recourse financing joined the long list of distressed U.K. power assets last fall when the plant's tolling counterparty, TXU Europe, filed for bankruptcy.

The nascent market for trading renewable energy credits (RECs) could be hamstrung by spikes in price volatility if markets don't allow more flexible rules governing the ownership of emission contracts, according to a preliminary study conducted by Marc Chupka, senior consultant at the Brattle Group in Washington, D.C.

FPL Group Capital, a subsidiary of energy-services provider FPL Group, issued $500 million of three-year debentures last week to refinance short-term debt. Proceeds from the sale of 3.25% notes will be used to repay a portion of commercial paper that had been issued to fund FPL Group Capital's investments in independent power projects.

San Jose, Calif.-based Calpine is asking creditors in its $3.5 billion brace of non-recourse construction revolvers to allow it to slow down construction on three plants, a little over three months after a lack of lender support forced it to shelve a request to mothball five of the plants. Some lenders think the latest request will face a similarly negative response. "They're asking for a lot and not giving up much," says one lender. Calpine is looking for bank approval by Friday. Katherine Potter, spokeswoman at Calpine, declined to comment.

Union Electric, a regulated utility of Ameren, will use the proceeds from a recent offering of $114 million of 12-year 4.75% senior secured notes to retire $85 million of 8% first-mortgage bonds due 2022. The deal bears a strong resemblance to Union Electric's issuance last month of $184 million in 5.5% coupon bonds to retire $104 million in 8.25% first-mortgage bonds also maturing in 2022.

Cleveland Electric Illuminating Co., a unit of Akron, Ohio-based FirstEnergy, has closed a $48 million letter of credit facility with PNC Bank, National City and US Bank joining mandated lead arranger Barclays Capital.