Hunterstown ups term B to $400 million, flexes to Libor plus 425 bps

By Sara Rosenberg

New York, May 1 – Hunterstown Generation (Kestrel Acquisition LLC) upsized its seven-year term loan B to $400 million from $375 million and reduced pricing to Libor plus 425 basis points from talk in the range of Libor plus 450 bps to 475 bps, according to a market source.

Additionally, the original issue discount on the term loan was tightened to 99.5 from 99, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $440 million of senior secured credit facilities, up from $415 million, also include $40 million five-year revolver.

Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the joint lead arrangers and bookrunners on the deal.

Commitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.

Allocations are expected on Wednesday.

Proceeds will be used to finance Platinum Equity’s acquisition of the Hunterstown generation facility from GenOn Energy. Platinum Equity has partnered with AOS Energy Partners to acquire the asset.

The additional funds from the term loan B upsizing will be used to reduce the equity check for the transaction.

Hunterstown is an 810 MW natural gas-fired combined cycle power plant located in the PJM-MAAC capacity region in Gettysburg, Pa.

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