Hamilton Projects launches amendment, plans privately placed loan

By Sara Rosenberg

New York, April 3 – Hamilton Projects Acquiror LLC is seeking an amendment to its $789 million term loan B due June 26, 2027 and is planning on getting a non-fungible $161 million privately placed incremental term loan B, according to a market source.

Pricing on the incremental term loan B is SOFR plus CSA plus 450 basis points, the source said. The CSA is ARCC standard of 11.448 basis points one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Like the existing term loan, the incremental term loan has a 75% excess cash flow sweep with a target debt balance and a 1.1x debt service coverage ratio covenant.

The amendment to the existing term loan would allow for a one-time distribution of up to$285 million, inclusive of cash on the balance sheet, which would be funded in part by the incremental term loan.

In addition, the amendment would add 101 soft call protection for six months to the existing term loan B and transition pricing on the existing term loan to SOFR with ARCC CSA from current pricing of Libor plus 450 bps, the source continued.

Morgan Stanley Senior Funding Inc. is the left lead on the deal.

Consents are due at 5 p.m. ET on Thursday.

Lenders are being offered a consent fee of 100 bps.

The amendment requires 50.1% approval from existing lenders, the source added.

Hamilton Projects is the owner of combined cycle gas fired power plants.

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