The private-equity group that acquired Texas Genco from Centerpoint Energy is planning to take the IPP public, according to Power Finance & Risk, an LMW sister publication. GC Power Acquisition, the vehicle for Kohlberg Kravis Roberts, Texas Pacific Group, The Blackstone Group and Hellman & Friedman, acquired the 14 GW generation player just over a year ago for $3.65 billion, putting in $753 million of equity.
Goldman Sachs and Morgan Stanley acted as joint lead arrangers for the bank debt with Deutsche Bank and Citigroup bookrunners. The debt comprises a $1.15 billion "B" loan, a $325 million revolver, a $200 million letter of credit facility and a $475 million delayed draw "B" loan. The "B" loan, which has a spread of LIBOR plus 2%, is quoted at 101 3/8-101 3/4. According to Markit, the revolver is quoted in a thin market at 97 7/8-98 5/8.
Market officials have said banks have been asked to value the portfolio and suggest how much of the Houston-based operation could be offloaded. The predominantly oil and gas fired fleet has benefited significantly from the run-up in commodities prices over the past several months, noted bankers. Officials at the private equity groups either declined to comment or did not return calls. Credit Suisse First Boston is said to be in discussions with the group to participate in the deal but it is unclear if there are other banks involved.
