Goldman Sachs and Credit Suisse are set to launch syndication Thursday of a $1.17 billion financing to back American National Power's acquisition of Coleto Creek. American National Power, the subsidiary of International Power, acquired the 632 MW coal facility earlier this year. Officials at Goldman and Credit Suisse either did not comment or did not return calls.
The financing package breaks down into a seven-year, $935 million term loan; a five-year, $60 million revolver and a five-year, $175 million synthetic letter of credit facility. Pricing is dependent on ratings from one of the ratings agencies and could not be determined. A spokesman for International Power in London did not return a call for comment. When the acquisition was first announced, ANP expected the deal to close by the third quarter.
Debt will represent about 70% of the total cost of the $1.14 billion acquisition price, with the company kicking in about $300 million in cash. Coleto has power purchase agreements with J. Aron & Co. and Morgan Stanley, which were signed when Sempra Energy and Carlyle/Riverstone acquired Coleto from American Electric Power two years ago.