Linden Cogeneration launches credit facility at Libor plus 425-450 bps

By Sara Rosenberg

New York, June 8 – Linden Cogeneration Power Complex (EFS Cogen Holdings I LLC) came out with price talk on its $1,125,000,000 senior secured credit facility with its bank meeting on Wednesday, according to a market source.

The facility $125 million five-year revolver is talked at Libor plus 425 basis points to 450 bps, and the $1 billion seven-year first-lien term loan B is talked at Libor plus 425 bps to 450 bps with a 1% Libor floor and an original issue discount of 99, the source said.

Included in the term loan is 101 soft call protection for six months, amortization of 1% per annum and an excess cash flow sweep of the greater of 75% and the amount required to reach the target debt balance.

Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets Inc., MUFG, GE, Investec and ICBC are the joint lead arrangers and bookrunners on the deal.

Commitments are due on June 22, the source added.

Proceeds will be used to recapitalize the borrower in connection with Ares EIF’s acquisition, to refinance Linden’s existing debt and to fund a debt service reserve account.

Linden Cogeneration is the owner of a natural gas-fired combined-cycle cogeneration project, located in Linden, N.J.

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