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Overview

China Merchants Bank contributes $24 million USD to the $262 million USD term loan tranche of a $297 million USD syndicated loan for the 1063 MW Lincoln Power Portfolio Refinancing Project

Commitments (Constant USD, 2023)$24,151,111
Commitment Year2018Country of ActivityUnited StatesDirect Recipient Country of IncorporationUnited StatesSectorEnergyFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 27, 2018
Last repayment (originally scheduled)
Aug 25, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China Merchants Bank Co., Ltd.

Cofinancing agencies

Private Sector

  • ABN AMRO Bank NV
  • CIT Bank, N.A.
  • General Electric Capital Corporation (GECC) (GE Capital)
  • Investec Group
  • Migdal Insurance and Financial Holdings Ltd.
  • National Australia Bank Limited (NAB)
  • SunTrust Robinson Humphrey, Inc. (STRH)

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Lincoln Power, LLC

Loan description

CMB and ICBC contributions to a $297 million USD syndicated loan for the 1063 MW Lincoln Power Portfolio Refinancing Project in the United States in 2018

Interest rate (t₀)5.273%Interest typeVariable Interest RateMaturity7 years

Narrative

Full Description

Project narrative

On August 27, 2018, financial close was reached on a deal in which a syndicate of nine banks — including China Merchants Bank Co., Ltd. and the Industrial and Commercial Bank of China (ICBC) — entered into a $297,000,000 USD syndicated loan agreement with Lincoln Power, LLC — a Delaware-incorporated special purpose vehicle (SPV) and wholly-owned indirect subsidiary of Carlyle Power Partners II, L.P., a Delaware-incorporated private equity fund controlled by The Carlyle Group, Inc., an American multinational private equity and asset management firm publicly traded on the Nasdaq Stock Market — for the 1063 MW Lincoln Power Portfolio Refinancing Project. The loan was divided into two tranches: a $262.00 million USD term loan tranche with a maturity period of seven years and an interest rate based on LIBOR plus an initial margin of 275 basis points (bps), rising to 300 bps after four years, fees of 0 bps, and a debt service cover ratio from 1.20, and a $35.00 million USD letter of credit tranche with a maturity period of seven years. China Merchants Bank contributed $24.00 million USD and ICBC contributed $29.00 million USD to the $262 million USD term loan tranche. Record ID#109269 captures China Merchants Bank's contribution. Record ID#109270 captures ICBC's contribution. In addition to China Merchants Bank and ICBC, the following lenders contributed to the tranche: CIT Bank, N.A. ($29.25 million USD), General Electric Capital Corporation (GE Capital) ($29.25 million USD), Investec Group ($29.25 million USD), Migdal Insurance and Financial Holdings Ltd.($29.00 million USD), National Australia Bank Limited (NAB) ($29.00 million USD), and SunTrust Robinson Humphrey, Inc. (STRH) ($29.25 million USD). ABN AMRO Bank N.V. was the sole provider of the $35 million USD letter of credit. CIT Bank served as joint lead arranger and depositary agent. The proceeds were to be used by the borrower to refinance debt associated the Lincoln Power Portfolio, a 1039 MW portfolio of three peaking gas-fired power plants in Illinois all located in the premium Commonwealth Edison zone of PJM Interconnection market near Chicago: the 500 MW Elgin Energy Center in Elgin, Cook County; the 375 MW Rocky Road Energy Center in East Dundee, Kane County; and the 188 MW Tilton Energy Center in Tilton, Vermilion County.