J-Power USA reached financial close today on its 1.2 GW Jackson Generation combined-cycle gas-fired project in Grundy County, Ill., securing a combination of bank and fixed-income debt totaling $790 million.
The deal is split between $690 million in bank loans, including letters of credit, and a $100 million project bond.
CIT Bank, Crédit Agricole, Mizuho, MUFG and SMBC provided the construction-plus-five-year mini-perm and letters of credit. BNP Paribas was previously also involved (PFR, 1/8) but is understood to have withdrawn from the deal.
The bank debt was priced at 300 basis points over Libor. Bankers were telling PFR in May that they expected pricing on quasi-merchant gas-fired projects in PJM Interconnection to come in slightly wider of that mark (PFR 5/16).
Prudential Capital provided the fixed-rate tranche, which has the same construction-plus-five-year tenor.
The project has a five-year revenue put provided by J. Aron, the commodities trading arm of Goldman Sachs.
The capital structure for the project implies a 50:50 debt-to-equity ratio, says a person familiar with the transaction. Equipment supplier Mitsubishi Hitachi Power Systems is said to be providing the project's turbines.
Officials at J-Power in Chicago declined to comment.
Editor's Note: A previous version of this story incorrectly referred to the bank loan as a seven-year mini-perm, rather than a construction-plus-five-year mini-perm. The construction period is approximately two years.