Madison Dearborn, U.S. Power Generating get $975 million financing for three NYC power plants

By Paul A. Harris

St. Louis, Oct. 4 - Madison Dearborn Partners LLC and U.S. Power Generating Co. LLC have received commitments for $975 million of financing from Morgan Stanley and Goldman Sachs & Co. backing the purchase of three New York City power plants from Reliant Energy, according to a market source.

The deal is expected to close in early 2006.

The package will include $600 million of first-lien debt including a $50 million revolving credit facility, $120 million of synthetic letter-of-credit commitments and an approximately $430 million term loan. The financing also includes $300 million of second-lien debt.

Houston-based Reliant will sell its Astoria, Gowanus and Narrows plants.

Madison Dearborn Partners is a Chicago-based investment firm.

U.S. Power Generating Co. is a New York-based electricity generating asset acquisition company.

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