ICBC contributes $31.38 million USD to the $334 million USD term loan tranche of the $369 million USD syndicated loan for the 805 MW Red Oak Combined-Cycle Power Plant 2018 Refinancing Project (Linked to Record ID#105351, #105353, and #105354)

Project narrative

On December 12, 2018, financial close was reached on a deal in which a syndicate of at least four banks — China Merchants Bank Co., Ltd., the Industrial and Commercial Bank of China (ICBC), Nomura Holdings, and Investec Bank — entered into a $369.00 million USD senior secured syndicated loan agreement with Red Oak Power, LLC — a Delaware-incorporated special purpose vehicle (SPV) and an indirect wholly-owned subsidiary of TigerGenCo, LLC (TGC), a Delaware-incorporated developer, owner, and operator of power generation and energy infrastructure projects in the Northeastern United States and an indirect wholly-owned special purpose acquisition subsidiary of North Haven Infrastructure Partners II US Investments L.P, the general partner of which is Morgan Stanley Infrastructure II, Inc. — for the 805 MW Red Oak Combined-Cycle Power Plant 2018 Refinancing Project. This loan was divided into two tranches: a $334.00 million USD term loan tranche and a $35.00 million USD revolver tranche. This loan carried a maturity period of seven years and an interest rate based on LIBOR plus an initial margin of 275 basis points (bps) for four years, rising to 300 bps in the final three years of the loan's maturity. This loan carried a hedge toggle feature that would increase the margin of the interest if the sponsor failed to recontract the power plant by a certain deadline. This loan was secured (i.e. collateralized). China Merchants Bank contributed $34.38 million USD and ICBC, Nomura, and Investec each contributed $31.38 million USD to the $334 million USD term loan tranche. Record ID#105351 captures China Merchants Bank's contribution. Record ID#105352 captures ICBC's contribution. China Merchants Bank, ICBC, Nomura, and Investec each contributed $5.63 million USD to the $35 million USD revolver tranche. Record ID#105353 captures China Merchants Bank's contribution. Record ID#105354 captures ICBC's contribution. Other lenders to the tranches are unknown. Investec led the syndicate with ICBC and Nomura also serving as coordinating lead arrangers and China Merchants Bank serving as lead arranger. The loan was twice oversubscribed. The proceeds were to be used by the borrower to refinance the 805 MW Red Oak Combined-Cycle Power Plant (CGGT) in Sayreville, Middlesex County, New Jersey, namely, paying off $160 million USD of outstanding bonds. The plant was commissioned in March 2002. In September 2024, Red Oak Power proposed a $260 million USD term loan B to refinance the existing debt of the project.