American National Power to get new credit facility for Coleto Creek purchase

By Sara Rosenberg

New York, April 24 - American National Power Inc. plans on getting a new credit facility to help back its $1.14 billion acquisition of the 632 megawatt coal-fired Coleto Creek Power generation facility from Topaz Power Group, according to a market source.

Credit Suisse and Goldman Sachs are joint leads on the deal.

There are no specific details yet on the loan size, the tranching or the timing; however, it is expected that the facility should be in the market "soon," the source said.

And, in the acquisition announcement, it was said that the actual purchase and working capital requirements will be funded by a fully underwritten non-recourse debt facility of $935 million.

In addition, American National's parent company, International Power plc, will contribute $288 million toward the purchase that will come from the current liquid resources.

The majority of Coleto Creek's output is forward contracted to 2009. Additional forward contracts have been agreed and will be put in place through to 2013 for about 50% of the plant's output. The credit support required for these forward hedging arrangements will be provided within the financing facility.

The acquisition is subject to regulatory approval and is expected to be completed in the third quarter.

International Power is a London-based independent electricity generating company, and American National Power is the company's wholly owned subsidiary with operations in the United States.

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