Race Point Power trims term loan to $275 million, recommits due Friday

By Sara Rosenberg

New York, Dec. 8 - Race Point Power downsized its seven-year term loan to $275 million from $370 million and asked for recommitments by Friday, according to a market source.

Price talk on the loan was left unchanged at Libor plus 600 basis points with a 1.75% Libor floor and an original issue discount of 98.

There is 101 soft call protection for one year.

Barclays and Credit Suisse are the lead banks on the deal.

Proceeds will be used to refinance existing debt and to fund a dividend payment.

As a result of the downsizing, the dividend was reduced to $177 million from $205 million and less debt is being refinanced. Also, previously, some funds were going to be used for acquisition financing, but because of delays with the transaction, there will no longer be anything put aside for that purpose.

Net leverage is now 4.3 times versus 5.7 times under the original structure.

Ratings on the original structure were Ba2/BB-.

Race Point Power is an enterprise that holds interests in a number of power plants and is owned by ArcLight Capital Partners LLC.

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