Chief Power launches $335 million term B at Libor plus 800-825 bps

By Sara Rosenberg

New York, July 23 – Chief Power Finance LLC launched on Tuesday its $335 million five-year term loan B with price talk of Libor plus 800 basis points to 825 bps with a 2% Libor floor and an original issue discount of 98, according to a market source.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three, the source said.

The company’s $380 million of credit facilities also include a $45 million 4.5-year super senior revolver that will be undrawn at close.

Barclays and Morgan Stanley Senior Funding Inc. are the lead arrangers on the deal.

Commitments are due at noon ET on Aug. 6, the source added.

Proceeds will be used to refinance existing credit facilities and partially finance the acquisitions of PSEG’s KeyCon ownership interests. The refinancing transaction also contemplates the un-levered contribution of KeyCon’s O&M contract into Chief.

ArcLight Energy Partners Fund V LP is the sponsor.

Chief Power is the indirect owner of undivided ownership interests in two coal-fired generating facilities with a total net owned capacity of 2,137 MW, pro forma for the contemplated acquisition of PSEG’s KeyCon ownership interests.

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