Southeast PowerGen talks $480 million term B at Libor plus 375-400 bps

By Sara Rosenberg

New York, Oct. 28 – Southeast PowerGen LLC launched on Tuesday its $480 million seven-year term loan B with price talk of Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year and amortization of 1% per annum, the source said.

There is an excess cash flow sweep of the greater of 75% of excess cash flow and an amount sufficient to meet a target debt balance.

The company’s $550.5 million senior secured credit facility also includes a $70.5 million five-year revolver.

Commitments are due on Nov. 11, the source added.

Morgan Stanley Senior Funding Inc., MUFG Union Bank and Citigroup Global Markets Inc. are the lead banks on the deal.

Proceeds will be used to fund the acquisition by the Carlyle Group of 75.05% of the outstanding interests and operational control of Southeast PowerGen from ArcLight Capital Partners and GIC, to repay existing debt, to fund an operating expense reserve account, to partially fund a debt service reserve and to make a distribution to GE EFS.

Southeast PowerGen is a portfolio of six natural gas-fired power plants in Georgia.

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