KGen Partners to launch $475 million credit facility Tuesday

By Sara Rosenberg

New York, Feb. 14 - Kgen Partners LLC will launch its proposed $475 million credit facility to new and existing lenders in a conference call scheduled for Tuesday, according to sources.

Credit Suisse First Boston is the lead bank on the deal.

The facility consists of a $225 million first-lien term loan talked at Libor plus 300 basis points and a $250 million second-lien term loan talked at Libor plus 600 basis points - split between Libor plus 300 basis points cash payout and Libor plus 300 basis points pay-in-kind, sources said.

Both term loans are expected to be offered to investors at par with call protection of 101 in year one, 101 in year two and par thereafter.

Proceeds will be used to refinance existing bank debt, to repay seller notes and to increase liquidity.

KGen, which is owned by MatlinPatterson Global Opportunities Partners II, purchased Duke Energy's merchant generation assets in the southeast United States last year.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.