Longview Power prices upsized $300 million six-year term loan at 99

By Paul A. Harris

Portland, Ore., April 8 – Longview Power LLC priced its upsized $300 million Libor plus 600 basis points six-year term loan B at 99, according to a market source.

The loan was upsized from $250 million.

The spread and price came on top of price talk. That talk had tightened during the time the loan was in the market. Earlier talk set a spread range of 625 to 650 bps and an issue price of 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.

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 were 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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