Cargill Venture Puts Kibosh On Lake Road Deal

A group of hedge funds reportedly led by an affiliate of Cargill Financial Markets has put the kibosh on US Power Generating Company's $220 million bid to acquire the 780 MW natural-gas fired Lake Road facility

  • 22 Dec 2004
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A group of hedge funds reportedly led by an affiliate of Cargill Financial Markets has put the kibosh on US Power Generating Company’s $220 million bid to acquire the 780 MW natural-gas fired Lake Road facility. In the last two days the funds have bought up approximately 25% ($150-200 million) of the bank debt associated with the 780 MW natural-gas fired plant from its existing creditors, gaining sufficient influence to sway voting at a sale confirmation meeting held yesterday.

Jay Worenklein, ceo at US Power, declined to comment on the transaction, as did officials at Lehman Brothers, which is acting as advisor to the Citigroup/ Société Générale-led creditor group. Calls to officials at Cargill were not immediately returned.

Ownership of Lake Road was transferred from previous owner National Energy & Gas Transmission to a Citigroup-led creditors group last September after a loan default. Worenklein put in a $220 million bid to acquire the facility from its creditors. The deal would have worked out to US Power paying $42 million in cash and assuming about $180 million of debt. The creditors still hold a claim against NEGT that will enable them to get $239 million separate from any plant sale. Under this deal creditors will recover approximately 80% of the bank debt.

But the debt on the plant, which was quoted around 50 last July, has climbed above this level. Bear Stearns reportedly traded a $25 million piece of the credit at 82 last week (LMW, 12/20).

 
  • 22 Dec 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,319 10 12.84
2 Citi 2,562 6 9.92
3 Goldman Sachs 2,150 3 8.32
4 Credit Suisse 1,822 6 7.05
5 Societe Generale 1,814 4 7.02

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%