Credit Suisse, Goldman Sachs and Merrill Lynch have launched syndication of a $760 million deal for Plum Point Energy Associates. The deal comprises a five-year, $65 million revolving credit facility; an eight-year, $590 million term loan "B," and an eight-year, $105 million synthetic line of credit. Pricing on all three tranches is LIBOR plus 3 1/4%. The deal launched last Thursday.
Plum Point will use the deal to fund its 63% ownership stake in a coal-fired electric generating plant that is currently being constructed along the Mississippi River in Osceola, Ark. Moody's Investors Service rated the deal B1, while Standard & Poor's assigned a B rating.
Based in Chesterfield, Mo., Plum Point is a member of the St. Louis-based LS Power Group, which owns and operates large-scale power generation plants and projects. Bankers at Goldman Sachs and CS were not available for comment. A call to LS Power was not returned, nor was a call to a banker at Merrill Lynch.