The owners of the 1,000 MW Moxie Freedom combined-cycle gas-fired project in Pennsylvania are preparing to launch a refinancing as the term loan B market revs back into life.
Bookrunner Citi is pre-marketing the $700 million seven-year term loan and $45 million five-year revolving credit facility with the aim of gathering commitments by March 11, PFR understands. Spokespeople for Citi in New York declined to comment.
Initial price talk is said to be between 375 and 400 basis points over Libor.
Sponsors Caithness Energy and Moxie Freedom brought the project online in Luzerne County, Pa., in PJM Interconnection, in November. Plans for its refinancing were reported by PFR shortly thereafter (PFR, 12/12).
The facility is expected to deliver revenues of 1.1 times debt service coverage.
BNP Paribas, Citi, GE Energy Financial Services and MUFG were coordinating lead arrangers on the project's original $600 million construction-plus-five-year mini-perm, which closed at 325 bp in November 2015 (PFR, 11/10/15).
Reverse Flexing in Ohio
Caithness and Moxie will be aiming to emulate the outcome obtained by Advanced Power for its 700 MW Carroll County CCGT in Ohio—at least on pricing (PFR, 1/31).
Bank of America Merrill Lynch, BNP Paribas and Crédit Agricole were bookrunners on the $526.5 million seven-year term loan B refinancing for that project, which was priced 25 bp inside price talk at 350 bp over Libor.
Moody's Investors Service and S&P Global Ratings gave the Carroll County deal Ba2 and BB ratings. It closed last Friday, Feb. 15.
The package comprises a $456.5 million term loan and a $70 million revolver. The 0% index floor and 99% original issue discount remained unchanged through syndication.
Spokespeople for the banking group in New York did not respond to inquiry by press time.