Longview Power upsizes term loan to $300 million, tightens talk to Libor plus 600 bps at 99

By Paul A. Harris

Portland, Ore., April 6 – Longview Power LLC upsized its six-year term loan B to $300 million from $250 million, according to a market source.

Spread talk on the loan tightened to 600 basis points from earlier talk of 625 to 650 bps, and final price talk saw the discount trimmed to 99 from 98. The Libor floor remains unchanged at 1%.

The term loan B has 101 soft call protection for one year and amortization of 1% per annum.

Also included in the deal is a 100% excess cash flow sweep.

Recommitments are due Tuesday.

Along with the term loan B, the $325 million senior secured credit facility (B2/BB-) provides for a $25 million five-year revolver.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets are the leads on the deal that launched with a bank meeting on Wednesday.

Proceeds will be used as exit financing to provide for distributions under the company’s reorganization plan, to complete repairs to the Longview Power Facility and for working capital. The additional proceeds resulting from the $50 million upsizing of the term loan will be used to return capital to investors.

Longview Power is a Maidsville, W.Va.-based integrated power generation enterprise. The company filed for bankruptcy on Aug. 30, 2013. The Chapter 11 case number is 13-12211.

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