The company has used part of the new capital – along with other available cash – to pay off a $430 million secured term loan that comes due in October 2004. As a result, it has released the collateral securing the three-year loan, including the company’s utility assets in Colorado, Iowa, Michigan and Nebraska.

Aquila had said at the end of August it was planning to retire the existing credit line and set up two new financings. The company expects the moves to reduce its outstanding debt by