Narrative
Full Description
Project narrative
On November 14, 2014, financial close was reached on a deal in which a syndicate of 11 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $582.10 million USD syndicated loan agreement with Oregon Clean Energy, LLC (OCE) — a Delaware-incorporated special purpose vehicle (SPV) and joint venture of EIF United States Power Fund IV, L.P. (USPF IV), a private equity fund of Energy Investors Funds (EIF) (50.0% equity stake) and ISQ Global Infrastructure Fund, L.P., a vehicle of I Squared Capital, an independent global infrastructure investment manager (50.0% equity stake) — for the 869 MW Oregon Clean Energy Center (OCEC) Project. This loan carried a maturity period of seven years and 10 months (7.833 years), a final maturity date of September 27, 2022, and an interest rate of LIBOR plus a margin of 325 basis points (bps). This was divided into three tranches: a $465.66 million USD term loan tranche; a $103.95 million USD letter of credit tranche; and a $12.50 million USD working capital tranche. ICBC contributed $60.00 million USD to the $465.66 million USD term loan tranche. Record ID#106047 captures ICBC's contribution. In addition to ICBC, the following lenders contributed the respective amounts to the loan syndicate: Bank of America ($63.75 million USD), BNP Paribas S.A. ($30.03 million USD), Crédit Agricole Group ($11.30 million USD), Deutsche Bank ($50.89 million USD), ING Group N.V. ($17.39 million USD), Investec Bank ($50.89 million USD), Royal Bank of Scotland (RBS) ($50.89 million USD), Siemens Financial Services GmbH ($35.00 million USD), and SunTrust Robinson Humphrey Inc. (STRH) ($44.64 million USD). ICBC contributed $10.00 million USD to the $103.95 million USD letter of credit tranche. AidData does not consider letter of credits to be flows. In addition to ICBC, the following lenders contributed the respective amounts to the tranche: Bank of America ($5.00 million USD), BNP Paribas ($18.36 million USD), Crédit Agricole Group ($37.08 million USD), and ING Group ($33.50 million USD). Bank of America and STRH each contributed $6.25 million USD to the $12.5 million USD working capital tranche. The proceeds were to be used to finance the development of the Oregon Clean Energy Center (OCEC), a greenfield 869 MW combined-cycle, natural gas-fired electric power project on a 30-acre site in Oregon, Lucas County, Ohio, in the suburbs of Toledo. The plant was expected to generate enough energy to power 500,000 homes. OCEC included two Siemens SGT6-8000H gas turbines and one steam turbine and would generate energy for the Pennsylvania-New Jersey-Maryland (PJM) wholesale electricity market. The project had a 951 MW peak capacity and was designed to be most efficient generating facility in the mid-Atlantic power markets. In addition to the debt, the sponsors provided $267.9 million USD in equity split half way for the $850 million USD project. North America Project Development, LLC (NAPD), a vehicle of CME Energy, served as the original project developer and retained a small interest in the project after bringing in EIF and I Squared. Black & Veatch was responsible for project construction. Siemens provided its turbines. In May 2013, the Ohio Power Siting Board approved OCEC. Construction was expected to begin in the fourth quarter of 2014. The project was expected to begin commercial operations by July 2017. Construction began on November 17, 2014. The project began commercial operations in June 2017. ICBC's involvement in financing the OCEC Project became the source of local controversy. In August 2019, a group called Ohioans for Energy Security began a $1 million USD television and radio ad campaign with a 60-second spot featuring images of Chinese President Xi Jinping and Chinese officials in suits claiming that China was interfering with the American economy and the Ohio electric grid with narration telling viewers to not sign a petition supporting a referendum on House Bill 6, which was signed into Ohio state law in 2019 providing a $150 million USD per year subsidy for nuclear energy in Ohio beginning in 2021 to help prevent the closure of the two nuclear energy stations in the state. The bill was opposed by many environmental, businesses, and industry groups, including the natural gas companies. ICBC had contributed to syndicated loans for the Oregon Clean Energy Center, the Carroll County Energy facility, and the Lordstown Energy Center. This allowed supporters of House Bill 6, such as the nuclear energy industry, to claim that the Chinese government was attempting to take control of Ohio's natural-gas fired plants, even though lending does not mean control (and ICBC was in a syndicate for those loans with other foreign banks) and the federal government via the Committee on Foreign Investment in the United States had the ability to prevent projects from proceeding if foreign investment posed national security risks (the owners of the nuclear plants in Ohio, FirstEnergy, had previously received ICBC loans from it. Ohioans for Energy Security claimed that China was attempting to steal Ohio jobs, take over the electric grid and other energy infrastructure, and meddled in Ohio elections. Analysts noted that while the grounds of the argument were illogical, the campaign tried to connect local energy issues to the national issues raised by President Donald Trump, who had won Ohio in 2016. The referendum missed its deadline to go on bailout and House Bill 6 went into effect in October 2019. Later in March 2021, House Bill 128 was passed that partially repealed House Bill 6. On March 1, 2019, financial close was reached on a deal in which a syndicate of three banks — ICBC, Credit Suisse AG, and Barclays Bank Plc — entered into a $580.00 million USD syndicated loan agreement with Oregon Clean Energy, LLC for the 869 MW OCEC Refinancing 2019 Project. This loan was divided into two tranches: a $530.00 million USD senior secured Term Loan B tranche with a maturity period of seven years and an interest rate of LIBOR plus a margin of 375 bps and a $50.00 million USD senior secured revolving credit facility (RCF) tranche with a maturity period of five years and a final maturity date of March 1, 2024. The proceeds were to be used by the borrower to refinance the OCEC and for the sponsors to pay themselves a $62.7 million USD dividend. Each lender, including ICBC, contributed $176.67 million USD to the $530 million USD Term Loan B. Record ID#106048 captures ICBC's contribution. Barclays and Credit Suisse each contributed $25.00 million USD to the $50 million USD revolver tranche. All lenders served as bookrunners, with Credit Suisse serving as left lead arranger. On July 12, 2024, a two-bank syndicate of Bank of Montreal and Banco Santander, S.A. entered into a $455.00 million USD syndicated loan agreement with Oregon Clean Energy, LLC for the 869 MW OCEC 2024 Refinancing Project. The proceeds were to be used by the borrower to refinance OCEC.