MachGen Heads North On Break After Price Cut
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MachGen Heads North On Break After Price Cut

The repriced credit for MachGen kept desks busy last Thursday afternoon as it broke for trading at par 7/8-101 1/8 and ended up at par 5/8-par 7/8 by day's end, according to a dealer.

The repriced credit for MachGen kept desks busy last Thursday afternoon as it broke for trading at par 7/8-101 1/8 and ended up at par 5/8-par 7/8 by day's end, according to a dealer. Lead banks Morgan Stanley, Bear Stearns and Deutsche Bank launched a price cut on the term loan and synthetic letter of credit for the energy generation group mid-February (CIN, 2/16).

The financing consists of a $100 million revolver priced at LIBOR plus 2 1/4%, a $580 million first-lien term loan priced at LIBOR plus 2% and a $60 million synthetic letter of credit priced at LIBOR plus 2%. The term loan and synthetic letter of credit were both previously priced at LIBOR plus 2 1/4% before the cut. MachGen's term loan jumped three points to the 125-127 range at the end of January aided by increases in oil and gas prices and attractive equity components (1/30). A call to William Kriegle, ceo at K-Road Ventures which runs the power generation operation, was not returned.

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