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UIL takes $1.9B bridge loan to finance gas acquisition

New Haven gas and electric utility parent UIL Holdings Corp. has entered into a one-year bridge loan agreement worth as much as $1.9 billion to finance its acquisition of Philadelphia Gas Works.

The company — parent to United Illuminating Co., Southern Connecticut Gas Co. and Connecticut Natural Gas Co. — announced a deal in early March to purchase the municipally owned gas utility for $1.86 billion.

The lender is Morgan Stanley Senior Funding Inc. The loan is subject to the close of the acquisition, which still requires approvals from state and local officials in Pennsylvania.

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