Daily News: August 29, 2012

GE Energy Financial Arranges $107MM Facility For Tenaska


GE said its GE Energy Financial Services unit served as lead arranger of an approximately $107 million senior secured credit facility for two Illinois gas-fired peaker plants, managed by Tenaska Capital Management, a private equity firm and affiliate of Tenaska, one of the largest U.S. independent power producers.

The transaction will allow TCM to refinance debt facilities for the plants, which use 12 GE 7EA gas turbines and are located in Crete and Manhattan.

GE Energy Financial Services’ affiliate, GE Capital Markets, acted as sole lead arranger for the credit facilities – a four-year term loan and four-year revolver – and was joined by Credit Agricole Corporate and Investment Bank, Helaba Landesbank Hessen-Thuringen and Union Bank.

“Our expertise in merchant power and ability to provide energy sponsors with substantial capital commitments sets us apart from our institutional competitors,” said Matt O’Connor, managing director at GE Energy Financial Services.

This transaction expands GE Energy Financial Services’ and Tenaska’s relationship. In 2007, the GE unit provided $25 million in acquisition financing for the acquisition of the Lincoln and Crete power plants from affiliates of ArcLight Capital Partners, DTE Energy Services and Tyr Capital.

GE Energy Financial Services holds equity investments in power projects with a combined capacity of 30 gigawatts, equivalent to the installed generating capacity of Norway. The GE unit offers flexible financial structures ranging from common and preferred equity to debt and acquisition finance.