American National Power $1.165 billion facility to launch June 8

By Sara Rosenberg

New York, May 31 - American National Power Inc. has scheduled a bank meeting for June 8 to launch its proposed $1.165 billion credit facility, according to a market source.

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

The facility consists of a $60 million revolver, a $935 million term loan and a $170 million synthetic letter-of-credit facility, the source said, adding that pricing will be ratings dependent.

Proceeds will be used to help fund the $1.14 billion acquisition of the 632 megawatt coal-fired Coleto Creek Power generation facility from Topaz Power Group.

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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