EFS Cogen launches $950 million term loan B at Libor plus 375 bps

By Sara Rosenberg

New York, Sept. 10 – EFS Cogen Holdings I LLC (Linden) launched on Thursday its $950 million seven-year term loan B (Ba3/BB-) with price talk of Libor plus 375 basis points 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 six months, a debt service coverage ratio covenant and a six-month debt service reserve account.

The company’s $1.05 billion of senior secured credit facilities also include a $100 million five-year first-out revolver (Ba2/BB-).

Under a change of control, the credit facilities are portable to a qualified buyer, one which owns and operates gas fired electric generating facilities aggregating at least 500 MW.

Jefferies LLC, Barclays, Citigroup Global Markets Inc., MUFG, BMO Capital Markets and Investec are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Sept. 24, the source added.

Proceeds will be used to refinance existing debt and fund a small distribution to the parent.

EFS Cogen is the owner of a 974 MW natural gas-fired combined cycle cogeneration plant located in Linden, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.