Lightstone Generation finalizes OID on $1.7 billion in term debt at 98

By Sara Rosenberg

New York, Dec. 13 – Lightstone Generation LLC firmed the original issue discount on its $1,575,000,000 seven-year covenant-light term loan B and $150 million funded letter-of-credit facility (term loan C) strip at 98, the tight end of revised talk of 97.5 to 98 but wide of initial talk of 99, according to a market source.

Also, quarterly calls are now included in the credit agreement and MFN will now be applicable to all incremental pari debt, the source said.

Pricing on the term loans is Libor plus 550 basis points with a 1% Libor floor, and there is 101 soft call protection for six months.

Earlier in syndication, the spread on the term loans was increased from talk of Libor plus 475 bps to 500 bps, the 12-month MFN sunset was eliminated, the excess cash flow sweep of 100% was changed to be effective upon closing instead of in the first full fiscal year, the incremental unlimited amounts was revised to be subject to 3 times net leverage from 4.25 times net leverage, subject to ratings affirmation, and non-ordinary course asset sale proceeds were outlined as required to repay term loan borrowings with no reinvestment rights.

The company’s $1,825,000,000 credit facility (Ba3/BB-) also includes a $100 million revolver.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, RBC Capital Markets, Goldman Sachs Bank USA and UBS Investment Bank are the bookrunners on the deal.

Allocations are expected on Wednesday, the source added.

Proceeds will be used to support the buyout of the company by Blackstone and ArcLight Capital Partners LLC from American Electric Power for about $2.17 billion.

Closing is expected in the first quarter of 2017, subject to regulatory approvals from the Federal Energy Regulatory Commission, the Indiana Utility Regulatory Commission and federal clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Lightstone Generation is a portfolio of four power generation facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.