Pricing has been shaved on the $460 million loan backing Sempra Energy Partners and Carlyle/Riverstone's acquisition of generation assets from American Electric Power. Bankers said the $460 million credit for Coleto Creek is close to being wrapped, a little over a week after launching (LMW, 7/12). The debt was attracting interest from institutional players and hedge funds increasingly interested in project paper, according to Darvin Pierce, executive director with Van Kampen Investments.
Citigroup, Goldman Sachs and J.P. Morgan are leading the financing. The price tweak was in the $205 million seven-year first-lien term loan which moved down to LIBOR plus 2 1/4% from LIBOR plus 2 1/2%. The $150 million second-lien facility priced as expected at the LIBOR plus 3 1/2% level, said bankers. The senior debt also has a $105 million pro-rata tranche, split between a $55 million revolver and $50 million letter of credit facility.