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Xcel Energy, one of the largest electric utilities in the U.S., is courting FirstEnergy, TXU and Entergy as potential merger partners and at the same time is looking to repurchase the remaining 20% stake of its unregulated IPP affiliate, NRG Energy, which it partially spun off in May 2000. Lehman Brothers is advising the Minneapolis-based utility on the concurrent strategies. Paul Adelmann, a spokesman at Xcel Energy, confirmed the company is looking at these options, but declined to elaborate.

Calpine is looking to arrange a $2 billion secured loan facility, as a $1 billion unsecured loan it announced in January appears to be floundering, according to bankers. One banker close to the discussions says both secured and unsecured facilities are still live options, either individually or combined, but another, who is also involved, sees the latter option as unlikely. "The senior unsecured facility was supposed to close in January. It didn't." Getting the loan in place is seen as crucial for the San Jose, Calif., IPP because of the thin projected cash surplus it is forecasting for this year (PFR, 2/11).

Lead arrangers Citibank, BNP Paribas and the Export Development Corp., Canada's national credit export agency, expect to close syndication next month on InterGen's $533 million project loan for the construction of La Rosita I and II (1,075 MW), says a project financier familiar with the matter. Approximately 10-12 banks have already signed up with commitments in the $40-$50 million range, he says. He declined to name the banks or comment on the fees.

Lead arrangers of the Al Shuweihat S1 $1.3 billion project loan have restructured the deal to include a $250 million Islamic tranche to broaden the appeal of the deal among Middle Eastern banks during syndication, says an official involved in the deal. The banker says the move was necessary because many banks in the region are unable to provide loans that pay interest under the terms of Islam's Sharia law.

Garth Klimchuck, a managing director and head of Berenson, Minella & Co.'s power sector mergers & acquisitions group, left the New York firm last Friday to join a recently formed investment and merchant banking boutique. The new shop, Bovaro Partners, was set up last year to advise small and medium-sized energy companies, primarily in the $150-$400 million range, on raising private capital and M&A. Klimchuck says Bovaro's long-term goal is to also make investments in energy companies.

Eric Lyons, a debt origination banker at J.P. Morgan, has joined Dresdner Kleinwort Wasserstein, as a director in its London based energy and utilities practise.

Kirk Edelman, managing director in TD Securities' New York energy group, has left after less than a year at the firm. One banker says Edelman is a well-known name in project finance circles, particularly from his time at Dresdner Kleinwort Wasserstein, his previous shop before joining TD (PFR, 4/15). The reason for his Jan. 17 departure and whether he has landed elsewhere in the market could not be determined. A TD spokesman says the firm remains committed to the energy sector, and so it's likely Edelman will be replaced. He declined to comment on why Edelman left. TD recently reorganized its power team and elevated Julian Bott to a new slot heading up energy in the U.S. (PFR, 1/14).

UFJ Bank, the firm formed Jan. 15 by the merger of Sanwa Bank and Tokai Bank, has appointed Larry Bressler and Alan Nakatani as group co-heads of project, utility, energy and aerospace finance for the U.S.

Ameren will use the bulk of the proceeds from a Jan. 16 $100 million unsecured notes offering to help fund the construction of two generating facilities in Illinois with a 710 MW combined capacity, according to Linda DeWine, an analyst at Fitch, who rated the deal.

United Utilities Electricity, a Warrington, U.K.-based distribution business, managed to better the yield spread on a long-dated fungible bond issue for the second time in three months when it tapped the issue last week.