Kansas City, Mo. ? Aquila Inc. announced Friday it obtained a new credit agreement to replace its short-term loans, averting a potential financial crisis for the energy company.

The package from Credit Suisse First Boston consists of two secured loans: a three-year, $430 million loan to Aquila and a one-year, $200 million loan to a subsidiary, UtiliCorp Australia Inc.

Failure to obtain the agreement would have triggered repayment of about $3 billion in debt. In the first nine months of 2002, Aquila lost more than $1 billion as it exited the energy trading business.

“Completing this financing package is a key component of the overall plan we’ve been pursuing to achieve financial stability and return Aquila to its regulated utility roots,” said Rick Dobson, Aquila’s interim chief financial officer.

The initial interest rates are 7 percent for the one-year loan and 8.75 percent for the three-year term loan.