WestLB and Goldman Sachs Close US$ 400 Million Senior Secured Facilities to Finance Acquisition of Cutting Edge Power Plant
WestLB Capital Markets North America unit is pleased to announce that it successfully closed a US$ 400 million Senior Secured Credit Facility to finance Sequent Power Partners acquisition of Wolf Hollow I, L.P, a 720 megawatt (MW) power plant located near Dallas, Texas. WestLB acted as Sole Financial Advisor to Sequent, and Joint Lead Arranger and Joint Bookrunner with Goldman Sachs on the financing.
The US$ 400 million credit facilities consist of a first lien of US$ 130 million term loan, a first lien US$ 110 million synthetic LC, a first lien US$ 50 million working capital facility and a second lien US$ 110 million term loan. The first lien credit facilities received a rating of B1/BB- from Moody’s and Standard & Poor’s, respectively, while the second lien facility was rated B2/B.
The credit facility was structured to appeal to the institutional loan market, a deep and very liquid market comprised of hedge funds, CLOs, pension funds and insurance companies. The financing was approximately two times oversubscribed, with over 30 institutions committing to the deal.
WestLB has been very successful having completed two major power related financial advisory assignments and B-loan acquisition financings in less than six months, with a solid pipeline of other similar transactions.
This noteworthy deal is indicative of WestLB’s ability to strategically build on previous successes and relationships in the marketplace. It underscores the fact that WestLB is a significant player in this space and is able to offer a range of products to clients.
About Wolf Hollow Power Project
Wolf Hollow is 720 MW natural gas fired, combined cycle power plant that employs state of the art technology. It supplies 350 MW electrical capacity to Exelon Generation Company, pursuant to a 20 year power purchase agreement, and 330 MW to J. Aron & Company under a 5 year supply agreement.