KBC Bank has returned to the market with its $252 million Perryville Power construction loan for Mirant and Lousiana utility Cleco, and is looking for retail participants. A banker familiar with the deal said the original syndication was suspended last summer due to an issue over air permits, which have recently been received. About 15 banks are said to be looking at the loan, after 23 banks attended the meeting last week.
The restructured transaction comes back to the market with more equity, more amortization and a shorter tenor, the banker added. ANZ Bank and HypoVereinsbank are the co-arrangers, and CIC and Dexia have also committed. The banks are looking to syndicate about $120 million. The construction loan will be turned into a five-year term loan on July 1, carrying a LIBOR plus 1 1/2% spread until the conversion into a term loan, when pricing will step up to LIBOR plus 1 5/8%. The $346 million project is capitalized with 27.3% equity and 72.7% debt. The loan should be wrapped up by the end of the month, the banker added.