Dominion Energy has closed the sales of stakes in three generation assets located in Pennsylvania, Rhode Island and Louisiana.
The deal includes the acquisition by Starwood Energy Group Global of the 1,240 MW gas-fired, combined-cycle Fairless Power Station in Fairhills, Pa. and the 468 MW gas-fired, combined-cycle Manchester Street Power Station in Manchester, R.I., for about $1.23 billion, not including working capital (PFR, 9/25).
JP Morgan ran the auction process for the assets and Citi also advised Dominion on the transaction. The seller's legal counsel was McGuireWoods, while King & Spalding advised Starwood.
Term Loan B
Credit Suisse led on the $1.05 billion acquisition financing for Fairless and Manchester Street in a deal that closed on Dec. 14.
The package included a $925 million, seven-year term loan B which priced at 375 bp over Libor with a 0% index floor and was issued at a 99.75 discount.
Pricing on the facility flexed down from initial levels of 375 bp to 400 bp with a 99.5 OID.
Starwood also secured a $60 million revolving credit facility and a $65 million letter of credit for the merchant duo, both with five-year maturities.
Spokespeople for Credit Suisse in New York did not respond to inquiry about market interest in the debt by press time.
Dominion has also sold a 25% stake in Catalyst Old River Hydroelectric, a partnership that owns the 192 MW Sidney A. Murray Jr. hydro project in Vidalia, La., for approximately $90 million.
The buyer of the hydro partnership stake is a recently incorporated company called Rougaroux Power, according to a financial report filed with the U.S. Federal Energy Regulatory Commission on Nov. 28.
Rougaroux Power was incorporated in Delaware on Sept. 7 and the sale took place on Sept. 28. Further details of the company's ownership could not immediately be established.
Brookfield Asset Management owns the other 75% stake in Catalyst Old River Hydroelectric, through general partner Catalyst Vidalia Corp. and limited partner Vidalia Holding.
The fourth asset is Dominion’s 50% stake in its Blue Racer midstream joint venture with Caiman Energy II, for which First Reserve is paying some $1.5 billion following a competitive sales process run by Goldman Sachs (PFR, 11/1).
Spokespeople for Dominion did not immediately respond to inquiries by press time.