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.