Astoria Energy $900 million credit facility to launch Jan. 9 week

By Sara Rosenberg

New York, Dec. 21 - Astoria Energy (previously U.S. Power Generating Co. LLC) has narrowed down timing on the launch of its $900 million credit facility as a bank meeting is now expected to be held during the week of Jan. 9, as opposed to just being labeled as early-January business, according to a market source.

Morgan Stanley and Goldman Sachs are the lead banks on the deal, with Morgan Stanley the left lead.

The facility, as committed, consists of a $50 million revolver, a $120 million synthetic letter-of-credit facility, a $430 million term loan and a $300 million second-lien term loan.

Although the syndicate hasn't gone out with a firm structure on the deal, the loan is expected to come in line with what has been outlined in the commitment letter, with possible minor tweaks made to the size of the revolver, the source said.

Proceeds will be used to back the purchase of some Reliant Energy Inc. power plants. In early October, U.S. Power, a New York-based electricity generating asset acquisition company, and private equity firm Madison Dearborn Partners LLC announced that they would be acquiring three New York City power plants from Reliant - the Astoria, Gowanus and Narrows plants.

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