Essential Power launches amendment to extend and downsize revolver

By Sara Rosenberg

New York, Oct. 21 – Essential Power LLC held its amendment call on Friday morning, revealing that it is asking to extend the maturity on its revolving credit facility by one year to August 2018, reduce the revolver to $75 million from $100 million and remove a $25 million Lakewood revolver, according to a market source.

In addition, the amendment would release cash-collateralized letters of credit for a roughly $33 million term loan B paydown, release about $29 million of cash to the sponsor, reset some financial covenants and reduce annual asset management fees by $8 million, the source said.

Also, the amendment would reset the 101 soft call protection for six months on the term loan B.

Term loan B pricing will remain at Libor plus 375 basis points with a 1% Libor floor.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Consents are due at noon ET on Thursday.

Lenders are being offered a 25 bps consent fee, the source added.

Essential Power is a Princeton, N.J.-based wholesale power generator and marketer.

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