Atlantic Power launches $360 million term B at Libor plus 400-425 bps

By Sara Rosenberg

New York, March 18 – Atlantic Power Corp. (Thermal Asset portfolio) launched on Thursday its $360 million six-year term loan B with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

The company’s $405 million of credit facilities (Ba2) also include a $45 million revolver, which is expected to be undrawn at close.

RBC Capital Markets and MUFG are the lead arrangers on the deal.

Commitments are due on April 1, the source added.

Proceeds will be used to help fund the acquisition of Atlantic Power by I Squared Capital for $3.03 per share in cash, or about $961 million.

The transaction will be consummated by two separate entities, the Thermal Asset portfolio and the Hydro Asset portfolio. The Hydro Asset portfolio will be separately capitalized and will not be included in the term loan B credit group.

Closing is expected in the second quarter, subject to court approval of the arrangement, regulatory approvals, shareholder approval and certain third-party consents.

Atlantic Power is a Dedham, Mass.-based power producer.

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