Parkway Generation launches $75 million term B at SOFR plus 475 bps

By Sara Rosenberg

New York, Nov. 14 – Parkway Generation LLC held a lender call at 10:30 a.m. ET on Monday to launch a fungible $75 million incremental term loan B due February 2029 that is talked at SOFR+CSA plus 475 basis points with a 0.75% floor and an original issue discount of 98.6, according to a market source.

CSA is 11.4 bps one-month rate, 26.2 bps three-month rate and 42.8 bps six-month rate.

The incremental term loan has 101 soft call protection for six months and a 1.1x debt service coverage ratio covenant, the source said.

The company’s existing term loan B will transition to SOFR+CSA plus 475 bps with a 0.75% floor from Libor plus 475 bps with a 0.75% floor in connection with the incremental transaction.

Morgan Stanley Senior Funding Inc. is the left lead arranger on the deal.

Commitments and consents are due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to fund a special dividend and pay transaction fees and expense.

Existing lenders are being offered a 50 bps amendment fee.

Pro forma for the transaction, the term loan B will total $1.07 billion.

Parkway Generation is a portfolio of natural gas-fired power generation facilities.

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