LS Power ups loan to $800 million, cuts spread to Libor plus 425 bps

By Sara Rosenberg

New York, June 26 - LS Power increased its seven-year first-lien term loan (Ba2) to $800 million from $750 million and reduced pricing to Libor plus 425 basis points from Libor plus 450 bps, according to a market source.

Meanwhile, the original issue discount on the loan was widened to 98 from 981/2, the source said.

The loan has a 1.25% Libor floor and soft call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing project level debt, to fund reserve accounts, to fund a one-time distribution to the sponsor and for general corporate purposes.

The issuer is LSP Madison Funding LLC.

LS Power is a New York-based company that has a diversified portfolio of power generating facilities.

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