Tenaska Hits Mart For Energy Acquisition

Credit Suisse and Goldman Sachs last Wednesday launched syndication of $1.645 billion of loans to back Tenaska's acquisition of generation assets from Constellation Energy.

  • 01 Dec 2006
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Credit Suisse and Goldman Sachs last Wednesday launched syndication of $1.645 billion of loans to back Tenaska's acquisition of generation assets from Constellation Energy. The deal consists of a five-year, $50 million revolver; a seven-year, $250 million special letter of credit facility; a seven-year, $850 million term loan "B" and an eight-year, $495 million second-lien term loan. The revolver and term loan "B" are priced at LIBOR plus 2 1/2%, the letter of credit is priced at LIBOR plus 1 3/4% and the second lien is priced at LIBOR plus 5 1/2%. Lehman Brothers, JPMorgan and Calyon are also involved in the credit.

"It's a lot like other CS deals, and other deals in this space," said one investor. "It's got a first lien, second lien, fairly high leverage. Tenaska is a good [company] ­ the only question I have is whether it is suitable leverage for the deal." One portfolio manager named it as his favorite deal of the week. "It's a name I've known for a long, long time ­ I've dealt with them for 20 years," he said. "They have real good managers."

Tenaska announced Oct.11 it would acquire 3,145 megawatts of natural gas-fired generation assets from Constellation Energy for approximately $1.635 billion. The acquisition includes six generating facilities including ones in California, Texas, Virginia, West Virginia and two in Illinois. Tenaska is a power development company and energy marketer headquartered in Omaha. Jerry Crouse, cfo, referred calls to Daniel Lonergan, managing director of Tenaska Power Fund, who did not return a call.

  • 01 Dec 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Societe Generale 15.35
2 Rabobank 14.41
3 Morgan Stanley 11.73
4 Barclays 8.99
5 Credit Agricole 7.57

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Wells Fargo Securities 11,897.40 33 11.83%
2 Bank of America Merrill Lynch 9,837.56 29 9.78%
3 Citi 9,714.54 32 9.66%
4 JPMorgan 7,997.38 24 7.95%
5 Credit Suisse 6,335.67 14 6.30%