Credit Suisse First Boston and BNP Paribas are launching the underwriting phase of the $600 million Teco Tricon project loan this Thursday. A banker familiar with the deal said 12 banks have been approached for $75 million commitments. The spread on the deal is LIBOR plus 1 3/4%, but fees were not disclosed. Underwriting on the credit is expected to close by year-end, he added.
The credit backs the construction of two plants in Arkansas and Mississippi and re-finances the acquisition of Frontera, explained the banker. CSFB wrapped up the PSEG Power loan last week in a similar strategy of tapping a wide range of banks for underwriting positions. The PSEG loan was a blowout with almost twice as many commitments in than the lead was seeking, explained a banker familiar with the deal.