TPF II launches $1.5 billion term loan B at Libor plus 450-475 bps

By Sara Rosenberg

New York, Sept. 11 – TPF II launched on Thursday its $1.5 billion seven-year term loan B with price talk of Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99 to 99˝, according to a market source.

The term loan has 101 soft call protection for one year, amortization of 1% per annum and a 100% excess cash flow sweep, stepping down to 75% at less than 3 times leverage, the source said.

The company’s $1.59 billion senior secured credit facility (BB-) also includes a $90 million five-year revolver.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA and MUFG Union Bank are the lead banks on the deal.

Commitments are due on Sept. 25, the source added.

Proceeds will be used to repay existing debt at TPF II LC LLC, TPF II Rolling Hills LLC and Astoria Generating Co. Acquisitions LLC, to fund a distribution to the equity holders and to fund a debt service reserve account.

Closing is expected in the week of Sept. 29.

The borrowers are TPF II Power LLC and TPF II Covert Midco LLC.

TPF is an investor in energy and power assets.

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