The owners of a gas-fired combined-cycle project in Pennsylvania that began operations in November have mandated a bank to lead a refinancing of its debt in the term loan B market.

Caithness Energy and Moxie Energy brought the 1,000 MW Moxie Freedom project online in Salem Township, Luzerne County, on Aug. 31, according to PJM Interconnection’s new services queue.

The sponsors have appointed Citi to lead on the refinancing, say deal watchers.

pfr levloans plunge 5A timeline for the deal could not immediately be established. The project's existing five-year miniperm gives the sponsors a comfortable window in which to complete the refinancing, while the term loan B market has been struggling in recent weeks, prompting at least one power project borrower to postpone an offering until next year (PFR, 12/6).

Further details, such as the size of the planned deal, also could not be determined.

Stuart Murray, managing director for project and infrastructure finance at Citi in New York, declined to comment, and calls to officials at Caithness in New York and Moxie in Vienna, Va., were not returned by press time.

BNP Paribas, Citi, GE Energy Financial Services and MUFG were the coordinating lead arrangers on the original $600 million construction-plus-five-year debt financing for the project, which closed in November 2015. The mini-perm was priced at 325 basis points over Libor (PFR, 11/10/15).

The financing for the project also included $300 million in preferred equity, which was raised by Citi.

The project benefits from a rare form of hedge agreement called a gas netback, with an unusually long 10-year tenor. The counterparty of the hedge agreement could not immediately be identified.

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