Astoria Energy will launch a refinancing for a $700 million "B" loan facility backing construction of a 1,000 MW gas-fired plant in Queens this week, according to Power Finance & Risk, an LMW sister publication. The $725 million loan is led by Calyon and is divided between a $525 million and $200 million tranche, according to market officials. This will take out a Credit Suisse First Boston led-loan.
James Croyle, president of Astoria Energy in Concord, Mass., declined to confirm the numbers, but said construction risks have ameliorated enough to warrant better pricing this time around. He said the project is ahead of schedule and on or under budget. He declined further comment.
The existing debt was split between a $500 million first-lien priced at 5 1/4% over LIBOR and a $200 million second-lien tranche priced at 8 3/4% over LIBOR. The new pricing could not be learned. Calls to Francois Coussot, managing director at Calyon, were not returned. Astoria Energy is a subsidiary of Concord-Mass.-based SCS Energy. Officials at CSFB did not return calls.