Copying and distributing are prohibited without permission of the publisher
US Power's tentative recovery
09 April 2009
Three financings for US gas-fired plants – for GenConn, Midland Cogen and Astoria II – are in the market. They provide a good guide to banks' comfort levels, but not to whether there will be a revival in development activity. By Tom Nelthorpe
Read more:
[power]
[project finance]
[genconn]
[astoria]
Since the final months of 2008, three gas-fired power deals have been hovering on the edge of the US bank market. The three, from an NRG/United Illuminating joint venture, a tie-up between EQT and Fortistar, and from an SNC/EIF/Suez-led grouping, all benefit from power purchase agreements. They all use proven technology, and they all feature well-known sponsors.
But all of them have been subject to various tweaks and alterations, most of them not pricing-related, to bring in lenders. And the normal jostling for titles between arrangers, intense during the best of times, has acquired a sharp edge. If the similarities with the independent power project market of the mid-1990s were pronounced early in 2008, they are even more stark now.
Midland Cogen comes out first
The furthest advanced deal is the one without any construction risk. A joint venture of the EQT Infrastructure Fund and Fortistar signed...
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email info@projectfinancemagazine.com.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Subscribe
Free trial
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.
Free Trial