Power Finance & Risk is pleased to announce the short list for the following award: Term Loan B of 2020.
We have selected four deals that effectively navigated the volatile sub-investment grade credit markets. Let us know if your firm is missing from the credits.
Hamilton Projects AcquirorThe Carlyle Group and EIG Global Energy Partners’ deal to take ownership of Panda Power Funds’ Patriot and Liberty combined-cycle gas-fired plants in Pennsylvania ended years of speculation about the fate of the two plants. Morgan Stanley was appointed as left lead on a $900 million term loan B, dubbed Hamilton Projects Acquiror, which was launched into a market roiled by coronavirus. As part of the arrangements, Carlyle and EIG made equity cures at each of the two plants to keep them going. The deal closed on June 11, 2020. Coverage here. Buyers: The Carlyle Group and EIG Global Energy Partners Seller: Panda Power Funds Deal value: $1.54 billion Term loan: $900 million B loan, pre-loaded with a $100 million accordion feature Tenor: Seven years Revolving credit facility: $115 million Coordinating lead arranger (left lead): Morgan Stanley Lead arrangers: BNP Paribas and Credit Suisse Financial adviser to EIG: Houlihan Lokey Buyers’ counsel: Vinson & Elkins (financing) Buyers’ counsel: Debevoise & Plimpton (M&A) Seller’s counsel: Latham & Watkins Lenders’ counsel: Milbank Power markets consultant: ESAI Independent engineers report: E3 |
Linden CogenThe term loan B refinancing of the 974 MW gas-fired Linden Cogen plant in Linden, New Jersey was resized from $950 million to $1 billion in response to strong interest from investors during syndication. Deal watchers at the time said that the deal was largely a play on the New York City power market, since five of the plant’s six units sell their output on a merchant basis into Zone J of New York-ISO. Moody’s Investors Service and S&P Global Ratings assigned Ba3/BB- ratings to the Linden term loan B, the same ratings enjoyed by the loan that is being refinanced. The deal closed on October 1, 2020. Coverage here. Sponsors: JERA Co, Oaktree Capital Management, Ares Management Corp, Development Bank of Japan and HPJV1 (a joint venture between South Korean independent power producer GS EPS and a fund managed by Hana Alternative Asset Management on behalf of Mirae Asset Daewoo) Deal value: $1.1 billion Term loan: $1 billion Tenor: Seven years Revolving credit facility: $100 million Tenor: Five years Coordinating lead arranger (left lead): Jefferies Lenders: MUFG, Investec, Citibank, BMO Capital Markets, Barclays Sponsors’ counsel: White & Case Private placement investors’ counsel: Latham & Watkins Power markets consultant: ESAI |
New England PowerStonepeak Infrastructure Partners offered project finance lenders a novel opportunity when it repackaged a pair of aging Massachusetts peakers – plucked from GenOn Energy’s bankruptcy proceedings in 2018 – into a larger 1.6 GW portfolio, called New England Power, and refinanced it with a $540 million debt package at the start of 2020. Over a dozen lenders including commercial banks, infrastructure credit funds, insurance companies and Asian investors took tickets in the more than two times oversubscribed deal, which priced at 275 bp over Libor. The deal closed on January 30, 2020. Coverage here and here. Sponsor: Stonepeak Infrastructure Partners Deal value: $540 million Sole bookrunner: Investec Coordinating lead arrangers: Crédit Agricole, National Bank Financial and Nomura Term loan: $485 million Tenor: Seven years Pricing: L+275 bp Revolving credit facility: $55 million Borrower’s counsel: Sidley Austin Lenders’ counsel: Shearman & Sterling |
AstoriaInvestor consortium Astoria Power Partners clinched an $860 million term loan B refinancing for a portfolio of gas-fired assets in Queens, New York, at the end of 2020. The margin on the term loan came in at the tight end of initial price thoughts, which were 350 bp to 375 bp over Libor. The bookrunners were also able to ratchet the initial offer discount from 99% of par to 99.5%. The deal was rated Ba3 by Moody’s Investors Service and BB- by S&P Global Ratings. The debt was priced and allocated on December 4, 2020. Coverage here. Sponsors: APG, California State Teachers Retirement System, Harbert Management, MEAG and Clal Insurance Co Deal value: $860 million Bookrunners: Barclays (left), Morgan Stanley and Natixis Term loan: $800 million Tenor: Seven years Revolving credit facility: $38 million Tenor: Five years Debt service reserve letter of credit facility: $22 million Tenor: Five years Power markets consultant: ESAI |
