Terra-Gen talks $360 million credit facility at Libor plus 400 bps

By Sara Rosenberg

New York, May 9 - Terra-Gen Finance Co. LLC is talking its $360 million senior secured credit facility at Libor plus 400 basis points with a 1.25% Libor floor and an original issue discount of 99½ now that ratings of Ba3/BB/BB- have emerged, according to a market source.

The facility consists of a $60 million five-year working capital revolver and a $300 million six-year term loan B.

The term loan B has 101 soft call protection for one year.

Commitments are due on May 19.

Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC are the joint lead arrangers, joint bookrunners and syndication agents on the deal that launched last Thursday and is expected to close late this month.

Proceeds from the term loan will be used to fully repay existing corporate level debt, fund a cash distribution to parent company Terra-Gen Power LLC and partially fund a debt service reserve. The revolver will be used to issue letters of credit and to partially fund the debt service reserve.

Terra-Gen is a New York-based renewable energy provider.

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