Texas Commerce Bank is leading a $625 million credit supporting Seagull Energy's pending $402 million purchase of Arkla Inc.'s natural gas exploration and production company.

The credit is fully underwritten by administrative agent Texas Commerce, a unit of Chemical Banking Corp., and co-agents NationsBank Texas, Chase Manhattan Bank, First National Bank of Boston, and Morgan Guaranty Trust Co. The syndication will proceed Monday.

The facility comprises a $150 million three-year term loan and $475 million seven-year revolver. Pricing will start out higher than the roughly one percentage point over the London interbank offered rate on Seagull's previous $225 million facility.

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