Caithness Energy has appointed a bank as sole underwriter on the roughly $1 billion debt financing of its Guernsey Power Station gas-fired project in southeastern Ohio.
Investec is the lead arranger for the 1,650 MW combined-cycle project, deal watchers tell PFR. It is one of the largest in the queue for debt financing in PJM Interconnection.
Caithness, along with co-sponsor Apex Power Group, selected the South African firm after receiving debt proposals around the beginning of February (PFR, 2/5/19).
The terms of the deal could not immediately be established.
“Ralph's a smart guy. I imagine he’s pre-syndicated the debt out already," says a project finance banker, referring to Ralph Cho, co-head of power at Investec. "If he has, I'm sure you'll see some non-traditional lenders in there.”
Spokespeople for the project in Columbus, Ohio, did not immediately respond to inquiry and Cho declined to comment.
Located in Guernsey County, the Guernsey Power Station will be supplied with natural gas from the Utica and Marcellus shale regions via the Rockies Express pipeline.
Meanwhile, Caithness is preparing to launch a $745 million refinancing for its 1 GW Moxie Freedom CCGT in Luzerne County, Pa., which it co-owns with Moxie Energy (PFR, 2/22).