Hamilton Projects talks $900 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, June 2 – Hamilton Projects Acquiror LLC launched on Tuesday its $900 million seven-year first-lien term loan B with price talk of Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 96 to 97, 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.

The loan includes a 1.1x debt service coverage ratio, a six months debt service reserve account, and a cash sweep of the greater of 75% and the amount necessary to achieve a target debt balance, stepping down to 50% at a net leverage ratio of 3x.

The company’s $1.015 billion of senior secured credit facilities (BB-) also provide for a $115 million five-year revolver.

Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp. and Credit Suisse Securities (USA) LLC are the joint lead arrangers and bookrunners on the deal.

Commitments are due at 5 p.m. ET on June 11, the source added.

Proceeds will be used to fund the acquisition of Liberty Energy Center and Patriot Energy Center by Carlyle Power Partners II LP and EIG Management Co. LLC.

Liberty and Patriot are two natural gas-fired combined cycle gas power plants located in the PJM-MAAC capacity zone. The plants have a combined generating capacity of 1,671 MW.

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