Credit Suisse First Boston has unfurled a roughly $800 million "B" loan refinancing for K-Road Ventures' 3 GW purchase of Exelon Boston Generating facilities. The debt will recycle some $1.4 billion in construction loans obtained three years ago to bankroll the development of the generation fleet, which industry veteran William Kriegle acquired four months ago. The debt is structured as two-lien loan with the first-lien portion set at about $350-370 million and a $300 million second lien. It also includes a $130 million working capital letter of credit facility, which will help support the plants operations, including contracted fuel costs. Officials at CSFB declined to comment and Kreigle did not return a call for comment.
Exact pricing could not be ascertained. Financiers familiar with the deal say it is still being tweaked to appease the private equity and hedge fund shops, which own the plant and will take on the majority of the recycled debt. The remainder of the loans will be converted into equity, bankers said. Completion of the refinancing should occur in the next several weeks, said bankers.