Hamilton Projects flexes $900 million term loan to Libor plus 475 bps

By Sara Rosenberg

New York, June 10 – Hamilton Projects Acquiror LLC reduced pricing on its $900 million seven-year first-lien term loan B to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.

Also, the original issue discount on the term loan was set at 97, the tight end of the 96 to 97 talk, the source said.

As before, the term loan has a 1% Libor floor, 101 soft call protection for one year and amortization of 1% per annum.

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 (B1/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 remained due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday.

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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