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First Reserve's Longview amendment fails

19 August 2010

Read more: [longview] [first reserve] [coal] [amendment] [siemens] [aker]

Energy private equity sponsor First Reserve has failed to get lender consent for a partial refinancing amendment to the $1.1 billion in debt facilities on its Longview plant. First Reserve wanted banks to consent to amendments that might allow it to partially refinance the bank and B loan debt in the high yield market but leave some of the existing debt in place. Lenders rejected the amendments, saying that the inconvenience of agreeing to intercreditor arrangements amounted to a refinancing, and that they wanted to see a pricing increase from 250bp over Libor, Longview's current below-market margin, to something closer to 300bp.

Longview, a 769MW supercritical coal-fired...


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