Hunterstown launches $150 million incremental term B at 99.5 OID

By Sara Rosenberg

New York, Nov. 14 – Hunterstown Generation LLC (Kestrel Acquisition LLC) launched on Wednesday its $150 million incremental term loan B due June 30, 2025 with original issue discount talk of 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 425 basis points with a 1% Libor floor.

The incremental term loan has 101 soft call protection for six months, amortization of 1% per annum, a 1.1 times debt service coverage ratio covenant and an excess cash flow sweep of 100% with step-downs, the source said.

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

Proceeds will be used to fund a distribution and pay transaction fees and expenses.

An amendment is being sought with this transaction and lenders are being offered a 50 bps consent fee, the source added.

Commitments/consents are due at noon ET on Tuesday.

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

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