EFS Cogen to launch $1.05 billion credit facilities on Thursday

By Sara Rosenberg

New York, Sept. 8 – EFS Cogen Holdings I LLC (Linden) is scheduled to hold a bank meeting at 11 a.m. ET on Thursday to launch $1.05 billion of senior secured credit facilities, according to a market source.

Jefferies LLC, Barclays, Citigroup Global Markets Inc., MUFG, BMO Capital Markets and Investec are the lead arrangers on the deal.

The facilities consist of a $100 million five-year first-out revolver and a $950 million seven-year term loan B, the source said.

The term loan has 101 soft call protection for six months, a debt service coverage ratio covenant and a six-month debt service reserve account.

Under a change of control, the credit facilities are portable to a qualified buyer, one which owns and operates gas fired electric generating facilities aggregating at least 500 MW, the source added.

Proceeds will be used to refinance existing debt and fund a small distribution to the parent.

EFS Cogen is the owner of a 974 MW natural gas-fired combined cycle cogeneration plant located in Linden, N.J.

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