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Hudson Transmission: Resurrected
23 June 2011
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[Hudson Transmission]
Hudson Transmission Partners closed a $700 million private placement for its 660MW submarine transmission cable under the Hudson River on 23 May - bringing to an end a long road from concept to delivery. The $850 million deal, which has hovered on the edge of the market since 2007, finally closed after the New York Power Authority (NYPA) agreed to a long-delayed contract to buy the majority of the line’s capacity. Construction started the same month.
Royal Bank of Scotland (RBS) and Societe Generale arranged the debt. The oversubscribed 22-year private placement was sold to institutional investors, mostly large insurance companies such as John Hancock and Prudential, and priced in the low 200bp over the equivalent Treasury range. The roughly $150 million in equity came from Energy Investors Funds’ US Power Fund II (44.375%), Starwood Energy’s Starwood Energy Hudson Investors (44.375%) and the remainder from a joint venture made up of Hudson...
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