Copying and distributing are prohibited without permission of the publisher
Power
01 December 2005
Read more:
[editor]
[project financing]
Wolf Hollow acquisition launches
WestLB and Goldman Sachs have launched syndication of the $400 million Wolf Hollow acquisition financing. Wolf Hollow is a 730MW natural gas-fired combined cycle power project located in Granbury, Texas. AES was the original developer of the project, but handed back the keys to the plant to its lenders after a downturn in merchant power prices.
The plant has a power purchase agreement with Exelon Corporation that runs to 2023, while the remainder was dispatched into the Electrical Reliability Council of Texas (ERCOT). But this was not enough to support $285 million in senior debt, and Stark Investments and Sequent Power Partners ultimately agreed an acquisition that paid off the bulk of this debt.
The deal breaks down into a 6.5-year $130 million first lien B loan (rated at B1 by Moody's), a 7-year $110 million second lien B loan (rated at B2), a 6.5-year $110...
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