Homer City Generation talks $150 million term B at Libor plus 825 bps

By Sara Rosenberg

New York, Feb. 7 – Homer City Generation LP released price talk of Libor plus 825 basis points with a 1% Libor floor and an original issue discount of 98 on its in-market $150 million six-year senior secured term loan B, according to a market source.

The term loan has 101 hard call protection for one year, the source said.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Commitments are due on Wednesday, the source added.

Proceeds will be used to fund a cash collateralized letter of credit account or to directly collateralize obligations, to collateralize hedging obligations, to fund the debt service reserve account, to pay associated fees and expenses, and for general corporate purposes.

Homer City Generation is an Indiana, Pa.-based operator of coal-fired electric generating units.

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