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Saturday, 25 March 2017

Tellurian selects SG as Driftwood adviser

PFI Issue 597 - March 22, 2017

It has only been a little after a year since former Cheniere Energy CEO Charif Souki’s launch of his own LNG project development company in February 2016. But Tellurian has raised US$60m in development funding from friends, family, and management, US$25m from GE, and US$207m from Total to build mid-scale LNG export projects along the Gulf of Mexico coast.

Cheniere eyes financing for Midship pipe

PFI Issue 597 - March 22, 2017

Cheniere Energy is considering project finance and potential debt and equity offerings by subsidiaries to finance Midship, a 200 mile 36-inch interstate natural gas pipeline designed for a capacity of up to 1,400,000 dekatherms per day. The project has a rough estimated cost of about US$1bn.

Restructuring advisers hired on ExGen

PFI Issue 597 - March 22, 2017

Exelon and its lenders have each hired restructuring advisers to look at options for the ExGen Texas Power merchant unit and its US$650m in debt. The sponsor has hired PJT Partners.

​Helix TLB upsizes

PFI Issue 597 - March 22, 2017

LS Power’s Helix Generation Term Loan B was upsized to US$1.67bn from US$1.54bn and pricing was lowered ahead of closing. The spread settled at 375bp over Libor with a 1% floor and a discount of 99.5, lower than price talk at 425bp over Libor with a 1% floor and a discount of 99.

Offshore wind plans drawing interest

PFI Issue 597 - March 22, 2017

Offshore wind leasing programmes have drawn interest from both domestic and international players as various states saw progress on some of the schemes in recent weeks.

Eastern Power seeks repricing

PFI Issue 597 - March 22, 2017

Eastern Power was holding a lender call as PFI went to press, seeking a repricing and extension of the tenor on its US$1.65bn term loan. Morgan Stanley is leading the deal.

​Fluor proposes Cali light rail P3

PFI Issue 597 - March 22, 2017

The Los Angeles County Metropolitan Transportation Authority (Metro) has received an unsolicited proposal from Fluor to accelerate conversion of the Orange Line from bus rapid transit to light rail through a public-private partnership.

OSU nearing decision on energy P3

PFI Issue 597 - March 22, 2017

Ohio State University (OSU) is preparing to select a winning bidder on the 50-year multi-billion dollar energy P3 by the end of the semester in May. OSU president Michael Drake said the university’s CFO Geoff Chatas, formerly the head of infrastructure at QIC Infrastructure, will recuse himself from the decision process and will not be informed of the final candidates based on his involvement in the 2012 CampusParc transaction.

Northleaf completes Northwest Parkway buy

PFI Issue 597 - March 22, 2017

A consortium of Northleaf Capital Partners, DIF Infrastructure and HICL Infrastructure has reached financial close on its acquisition of the Northwest Parkway, a toll road in Denver, Colorado. Each investor bought a 33.3% stake in the project, which HICL previously said was expected to cost US$166m. The road started operations in 2003.

Bombardier and Metrolinx set for court battle

PFI Issue 597 - March 22, 2017

Bombardier Transportation was to face Toronto’s regional transportation agency Metrolinx in court this week in a bid to retain its C$770m contract to provide the vehicles for the Eglinton Crosstown light rail transit. On Tuesday, March 21 Bombardier was to have attempted to have the agency’s notice of contract default invalidated and convince the court it can deliver the vehicles despite persistent delays.

Bank/bond deal funds Highway 427

PFI Issue 597 - March 22, 2017

ACS has closed a C$78.5m bond deal to back the concession for the construction and operation of the extension of the Ontario Highway 427 for C$362m (US$269m).

Pattern closes Mont Sainte-Marguerite Wind

PFI Issue 597 - March 22, 2017

Pattern Energy Group has closed a C$263m construction-to-term financing for its 147MW Mont Sainte-Marguerite Wind project south of Québec City. Financing was provided by Manufacturers Life Insurance Company, Caisse de dépôt et placement du Québec and Bayerische Landesbank. The loan will fully amortise over the term of the project’s 25-year power purchase agreement (PPA) with Hydro-Québec.

BC seeks courts P3 partners

PFI Issue 597 - March 22, 2017

Partnerships BC has issued a request for qualifications on a public-private partnership to replace and expand the Abbotsford provincial court building. A shortlist of three respondents is expected to progress to the request for proposals (RFP) phase. Responses to the RFQ are due by May 4.

Canadian Natural Resources names banks

PFI Issue 597 - March 22, 2017

Canadian Natural Resources will acquire 70% of the Athabasca oil sands project from Royal Dutch Shell and Marathon Oil for more than C$12.7bn (US$9.43bn). The transaction will be financed with the issuance of C$4bn of Canadian Natural common equity to Shell and a new C$9bn acquisition facility.

Confederation Line bidding set to launch

PFI Issue 597 - March 22, 2017

Ottawa City Council has approved the launch of bidding for Stage 2 of the Confederation Line project to expand the light-rail transit (LRT) system. The project has an estimated cost of C$3.6bn (US$2.68bn). A US$2.5bn design-build-finance competition will be held to supplement provincial funding of just over C$1bn that was approved in June.

Axium closes IPP equity purchase

PFI Issue 597 - March 22, 2017

Axium Infrastructure has closed the acquisition of an equity interest in the natural gas-fired Kings Mountain Energy Center in North Carolina and the Middletown Energy Center in Ohio. The projects are currently under construction. Axium will own 25% in Kings Mountain and 19.6% in Middletown, alongside equity partner Capital Dynamics.

Lightstone seeks repricing

PFI Issue 597 - March 22, 2017

Lightstone Generation is looking to reprice its US$1.575bn Term Loan B and US$150m Term Loan C closed in December. The loans were priced at 550bp over Libor with a 1% floor. Price talk on the repricing is in the 450bp to 475bp over Libor range with a 1% floor.

San Francisco pulls US$1.2bn from DAPL banks

PFI Issue 597 - March 22, 2017

The San Francisco Board of Supervisors has voted unanimously in favour of efforts to divest from banks financing the Dakota Access Pipeline (DAPL) .

Top renewables buyers emerge

PFI Issue 597 - March 22, 2017

New market structures and participants including corporate power purchase agreements (CPPAs) and community choice aggregators (CCAs) have emerged as near-term drivers for renewable energy and state renewable portfolio standards are no longer the mainstay of renewable energy demand, according to a report from Moody’s.

Trans Mountain pipeline costs rise

PFI Issue 597 - March 22, 2017

Kinder Morgan has increased the estimated cost of the Trans Mountain pipeline project to US$7.4bn from US$6.8bn based on increased compliance costs associated with the National Energy Board’s 157 conditions, including thicker pipe walls, additional drilled water crossings and the Burnaby Mountain tunnel.

IDOT issues RFI on South Suburban airport

PFI Issue 597 - March 22, 2017

The Illinois Department of Transportation (IDOT) has issued a request for information to explore industry interest in a pre-development agreement on a P3 to redevelop the South Suburban airport. IDOT is looking for a private partner interested in developing, financing, and operating the airport. Responses are due by April 7 and a respondents’ forum with one-on-one meetings will be held on April 19.

San Francisco convenes advisers on broadband

PFI Issue 597 - March 22, 2017

San Francisco Supervisor Mark Farrell has assembled an advisory panel to determine how to implement the recommendations of a 2016 report encouraging a broadband P3 for the city. The group will revisit questions fielded by the earlier report that examined ideal partnerships, funding mechanisms, privacy standards and access models for a high-speed connectivity network throughout the city.

RFQ issued for Port of Wilmington P3

PFI Issue 597 - March 22, 2017

The Diamond State Port Corporation (DSPC), an entity of the State of Delaware, has issued a request for qualifications (RFQ) seeking a public/private partnership to improve, develop, finance and/or operate the Port of Wilmington and the Edgemoor brownfield facility. A long-term concession structure is under consideration.

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