Eastern Power revises OID on $200 million incremental term B to 99.5

By Sara Rosenberg

New York, Dec. 6 – Eastern Power LLC (TPF II Power LLC) tightened the original issue discount on its fungible $200 million incremental senior secured term loan B (BB-) due Oct. 2, 2021 to 99.5 from 99, according to a market source.

Pricing on the incremental loan is still Libor plus 400 basis points with a 1% Libor floor.

The incremental loan, as well as the existing term loan B, will get 101 soft call protection for six months.

The debt has a 100% excess cash flow sweep, stepping down to 75% at 3 times leverage.

Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Recommitments are due by 10 a.m. ET on Wednesday, with allocations expected thereafter, the source said.

Proceeds will be used to fund a one-time dividend.

Including the incremental loan, the term loan B will total $1,647,000,000.

With this transaction, the company is seeking an amendment to its existing $1,446,912,314 term loan B, and lenders are offered a 50 bps consent fee.

Eastern Power is an owner of gas-fired electric generating stations.

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