Lackawanna Energy price guidance surfaces; Odyssey Logistics on deck with amend and extend

By Sara Rosenberg

New York, July 5 – In the primary market on Wednesday, Lackawanna Energy Center LLC released price talk on its strip of term loan B-2 and term loan C debt in connection with its lender call.

And, also on the new deal front, Odyssey Logistics & Technology Corp. joined this week’s calendar with a proposed amendment and extension transaction.

Lackawanna proposed terms

Lackawanna Energy Center held its lender call on Wednesday afternoon and announced guidance on its $380 million six-year term loan B-2 and $95 million six-year term loan C strip at SOFR plus 500 basis points with a 0.5% floor, an original issue discount of 97 and 101 soft call protection for six months, a market source remarked.

Commitments are due on July 19, the source added.

The company’s $945 million of senior secured credit facilities also include a $120 million revolver and a $350 million privately placed term loan B-1 priced at a fixed-rate of 9.5%. The term loan B-1 is non-callable for two years, then at 101 in year three.

Morgan Stanley Senior Funding Inc., BMO Capital Markets, BNP Paribas Securities Corp. and MUFG are leading the deal.

The term loan B will be used to repay the existing debt of the company and the holding company, the term loan C will be used to fund a collateral account to cash collateralize the issuance of letters of credit, and the revolver will fund various short-term working capital requirements and repay an existing working capital loan.

Lackawanna is a 1,483MW combined-cycle natural gas-fired power plant located in Jessup, Pa., in the MAAC sub-region of PJM. The project was developed by Invenergy and has a partnership with Blackrock Global Infrastructure Funds.

Odyssey readies deal

Odyssey Logistics set a lender call for 2 p.m. ET on Thursday to launch roughly $627 million of credit facilities (B2/B), according to a market source.

The facilities consist of a $125 million revolver and a $502,333,867 first-lien term loan, the source said.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, RBC Capital Markets, Citizens Bank and KeyBanc Capital Markets are leading the deal that will be used to amend and extend the company’s existing first-lien credit facilities, while also increasing the revolver size from its current amount.

With the extension, the company’s second-lien term loan will be paid down using cash on the balance sheet, the source added.

Odyssey Logistics is a Danbury, Conn.-based provider of multi-modal logistics services and technology solutions.

Fund flows

In other news, actively managed loan fund flows on Monday were negative $85 million and loan ETFs were positive $15 million, market sources said.

Year to date, outflows for loan funds total $18.5 billion, with negative $1.4 billion ETFs, sources added.

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