Narrative
Full Description
Project narrative
On December 9, 2015, financial close was reached on a deal in which a syndicate of eight banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $560.00 million USD syndicated loan agreement with LSP Park Generation, LLC — a Delaware-incorporated special purpose vehicle (SPV) wholly-owned by LS Power, Delaware-incorporated American family and employee-owned power and energy infrastructure development, investment, and operation company headquartered in New York City, New York — for the LS Power Park Gen Portfolio Refinancing Project. The loan carried a maturity period of seven years, a final maturity date of December 9, 2022, and an interest rate based on a variable rate plus a margin thought to be around 300 basis points (bps). The loan was divided into two tranches: a $550.00 million USD term loan tranche and a $10.00 million USD revolving credit facility (RCF) tranche. Each lender, including ICBC, contributed $68.75 million USD to the $550 million USD term loan, as captured by Record #110210, and $1.25 million USD to the $10 million USD RCF tranche, as captured by Record #110211. In addition to ICBC, the following lenders contributed to the loan syndicate: BNP Paribas S.A., Crédit Agricole Group, GE Energy Financial Services (EFS), ING Group N.V., Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Siemens Financial Services GmbH (SFS), and SunTrust Bank. ICBC, Crédit Agricole, BNP Paribas, ING, MUFG, and SunTrust served the coordinating joint lead arrangers. GE EFS and SFS served as joint lead arrangers. BNP Paribas served as administrative agent. The proceeds were used by the borrower to refinance debt on LS Power's Park Gen portfolio, consisting of three open-cycle natural gas-fired turbine peaking plants selling output into the PJM Interconnection market on a merchant basis: the 540 MW University Park North Energy Center and the 300 MW University Park South Energy Center in University Park, Will County, Illinois and the 825 MW Riverside Generating Station in Catlettsburg, Lawrence County, Kentucky. Specifically, it refinanced part of a $450 million USD term loan B from 2013 used to refinance University Park North and South and a $800 million USD term loan B used to refinance Riverside in 2012.