Oct 7 2010
Terra-Gen Power, an affiliate of Global Infrastructure Partners and ArcLight Capital Partners, has declared the signing of a $286 million financial agreement for its proposed 67 MW Dixie Valley geothermal plant located in Churchill County, Nevada.
The funding of $286 million includes A Series and B Series of Lessor Notes for a value of $175 million that are due in 2033 and assigned private placement and subsidiary credit facilities to the tune of $11 million. The equity financing for the furnished lease transaction was offered by MetLife. Barclays Capital, Inc., and BNP Paribas Securities Corp played the role of joint lead placement agent for providing the Lessor Notes where BNP worked as Administrative Agent, Syndication Agent and Lead Arranger for the bank facility. The Lessor Notes were bought by MetLife, John Hancock financial Services and Prudential Capital Group. The company is planning to use the income from the financing to purchase the remaining marginal interest in the Dixie Valley to pay back the liability of Dixie, and to close a part of Terra-Gen corporate level obligation for general business interests. Terra-Gen will persist with the administration and operation of Dixie Valley.
The Dixie Valley Plant generates electric power with low level emissions and has signed a power purchase contract with Southern California Edison up to 2038. The plant produces enough electricity to power around 60,000homes. Jim Pagano, Terra-Gen’s CEO, expressed his happiness to close the deal and purchase the balance of shares to determine the ownership of Dixie Valley.