KGen gets debt commitment from Morgan Stanley for purchase of generation assets

By Sara Rosenberg

New York, June 19 - KGen Power Corp. has received a commitment letter from Morgan Stanley for new debt financing that will help fund the acquisition of Complete Energy Holdings' 1,859-megawatt portfolio, according to a company spokesperson.

"KGen has a number of financing options available, including debt structures which may be executed either pre- or post-closing of the transaction," the spokesperson told Prospect News.

"In addition, the letter of commitment notes that KGen could utilize $50 million in cash for a portion of the purchase in lieu of accessing equity markets."

"Most important is that KGen has an extremely flexible capital structure," the spokesperson added.

The company is buying the assets, which include the McKittrick, Calif., La Paloma power plant and the Batesville, Miss., Batesville power plant, for $1.336 billion, plus working capital adjustments.

Closing is subject to certain regulatory approval and other conditions.

KGen is a Houston-based electricity generation company.

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