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High NRG

01 November 2001

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2001 has been a year characterised by increased lender caution, rising fees and continued nervousness about deregulation. This was the backdrop to the ambitious launch of a $2.5 billion construction revolving credit, lead arranged by Credit Suisse First Boston, to an already wary market. The deal closed, after low-level sniping from participant banks, and NRG has gone on to launch two new single asset deals.

The first, Brazos Valley, is a single-asset, merchant financing located within the tricky ERCOT market. Brazos Valley is a 633MW natural gas fired merchant power plant located in Fort Bend County, Texas, 30 miles south-west of Houston. Avista-STEAG LLC had a 51% stake in the project while NRG was set to own 49%. After the departure dirt of Avista and then, at close, of STEAG, ABN Amro launched the $189 million debt to co-arrangers. Royal Bank of Scotland (documentation) and Hypovereinsbank (syndication agent) jointly underwrote with ABN at close. ...


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