Narrative
Full Description
Project narrative
On July 11, 2017, a syndicate of eight banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $415.00 million USD syndicated loan agreement with Spruce Generation Funding, LLC — a Delaware-incorporated special purpose vehicle (SPV) and wholly-owned subsidiary of LS Power Equity Partners III, L.P., a Delaware-incorporated buyout fund managed by LS Power Equity Advisors LLC, a Delaware-incorporated power and energy infrastructure and investment manager of LS Power Development, LLC — to finance its acquisition of the 1279 MW Spruce Generation Peaker Portfolio. This loan was divided into three tranches: a $365.00 million USD term loan tranche with a maturity period of seven years, a final maturity date of July 10, 2024, and a variable interest rate of LIBOR plus a margin of 325 basis points (bps); a $25.00 million USD working facility tranche; and a $25.00 million USD letter of credit tranche.. Each lender, including ICBC, contributed $45.63 million USD to the $365 million USD term loan tranche, as captured by Record ID#108110, $3.13 million USD to the working capital tranche, as captured by Record ID#108111, and $3.13 million USD (AidData does not letters of credits to be flows). In addition to ICBC, the following lenders contributed to the loan syndicate: BNP Paribas S.A., CIT Bank, N.A., CoBank, ACB, Deutsche Bank AG, GE Energy Financial Services (EFS), SunTrust Robinson Humphrey, Inc. (STRH), and MUFG Bank, Ltd. All these lenders served as lead arrangers. The proceeds were used by the borrower to finance the acquisition of a portfolio of two power plants in the Northeastern United States in the PJM Interconnection market from Dynegy, Inc.: the 640 MW Troy Energy Facility, a natural gas-fired facility with four simple-cycle peaking units located in Luckey, Wood County, Ohio and the 639 MW Armstrong Power plant, a natural gas-fired facility with four simple-cycle peaking units located in Shelocta, Armstrong County, Pennsylvania. On February 23, 2017, Spruce Generation, LLC signed the membership interest purchase agreement with Dynegy to acquire Troy Energy, LLC and Armstrong Power, LLC, the SPV owners of the two plants, for $480,000,000 USD, plus adjustments, in cash. Dynegy had acquired the two plants as part of its acquisition of a 9 GW portfolio of assets from Engie in February 2017. LS Power named the portfolio Spruce Generation. The acquisition was expected to close in the third quarter of 2017, pending receipt of necessary regulatory approvals and third-party consents. The acquisition was completed on July 11, 2017.