By Paul A. Harris
St. Louis, Dec. 2 - OrCal Geothermal Inc. priced a $165 million issue of amortizing senior secured notes due Dec. 30, 2020 (Ba1//BBB-) at par on Friday to yield 6.21%, according to a market source.
Lehman Brothers ran the books for the Rule 144A issue. The notes were priced off of both the investment-grade and high-yield syndicate desks.
The notes have an average life of approximately seven years.
Proceeds will be used to repay existing project debt.
OrCal, a geothermal energy producer, is a subsidiary of Sparks, Nev.-based Ormat Technologies, Inc.
| Issuer: | OrCal Geothermal Inc.
|
| Amount: | $165 million
|
| Security description: | Amortizing senior secured notes
|
| Maturity: | Dec. 30, 2020
|
| Average life: | Approximately seven years
|
| Bookrunner: | Lehman Brothers
|
| Coupon: | 6.21%
|
| Price: | Par
|
| Yield: | 6.21%
|
| Spread: | 170 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 8
|
| Distribution: | Rule 144A
|
| Ratings: | Moody's: Ba1
|
| Fitch: BBB-
|
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