Houston boutiqueComplete Energy Holdings has launched a $560 million "B" loan deal to fund its acquisition of the 1 GW La Paloma Generating Station. The WestLB-led deal will have a first- and second-lien structure, says a banker, but the breakdown could not be obtained. Officials at WestLB declined to comment and Milton Scott, managing director at Complete Energy, did not return a call.
Pricing for the first lien is expected to land at around 250 basis points over LIBOR while second-lien pricing should be around 500 basis points, say trackers. Watchers expect syndication to be completed over the next few weeks.
Complete Energy, run by Scott and Hugh Tarpley, both former Dynegy executives, is paying more than $600 million for the gas-fired generating facility including potential adjustments of $50 million.