Lead arranger Credit Suisse First Boston has clipped about 1/8% off the pricing on the $200 million second-lien loan for power plant developer Astoria Energy. One financier said the spread now stands at 83/4% over LIBOR. He adds that the first-lien $500 million chunk has also firmed up at the top end of the LIBOR plus 5-51/4% spread range. The loan, which will finance construction of a 500 MW gas-fired plant in Queens, N.Y., has a full book of commitments and was set to close Friday after LMW went to press.
The deal has held center stage for many financiers over its syndication because it will be the first high-yield deal to fund construction of a power plant. Officials said this has traditionally been the preserve of bank lenders.