Eastern Power launches $200 million incremental term B at 99 OID

By Sara Rosenberg

New York, Nov. 30 – Eastern Power LLC (TPF II Power LLC) launched on Wednesday its fungible $200 million incremental senior secured term loan B due Oct. 2, 2021 with price talk of Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The incremental loan, as well as the existing term loan B, will get 101 soft call protection for six months, the source said.

The debt has a 100% excess cash flow sweep, stepping down to 75% at 3 times leverage.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to fund a one-time dividend.

Including the incremental loan, the term loan B will total $1,647,000,000.

With this transaction, the company is seeking an amendment to its existing $1,446,912,314 term loan B, and lenders are offered a 50 bps consent fee, the source added.

Commitments and consents are due on Tuesday.

Eastern Power is an owner of gas-fired electric generating stations.

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