To the Sierra Club Energy committee:
Any thoughts on what the articles below might mean? I am not sure what "mezzanine" financing is, or what this means for the future of Longview, but I would agree with Paula's comments "not a good time to be asking for financing". The article implies that "First reserve" now owns 90 % of Longview, does that mean Longview unloaded just in the nick of time? Who would we be dealing with if the plant actually goes on line in 2011? If so, in 2010, the non-profit funding from our air permit settlement comes in?
JBK
Paula Hunt pjhunt@xemaps.com 10/5/2008 9:19 AM >>>
Hi All,
Two things:
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I found some photos of Longview... great shots http://good-times.webshots.com/album/565599401uSyMvK
They are posted by a GenPower mechanical engineer (so his profile says). He must have a helicopter at his disposal...
He posted them late August and last updated them late September. The caption below says, " Aerial Photos of Longview Power Plant and Force Drilling Work Site"
What are they drilling Jarrett?
Is it to stabilize the surface from undermining? They seem to have a lot of ponds onsite.
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The mezzanine financing for Longview is due soon (not a good time to ask for credit!):
Commitments Due In Longview Financing
- 10/03/2008
Commitments are coming due in Merrill Lynch's $250 million mezzanine financing for Longview Power, owner of a 695 MW supercritical pulverized coal plant under construction in Maidsville, W. Va.
Ticket sizes were not specified for the debt, which will mature in February 2015, according to deal trackers, who say the lead has approached potential investors individually to judge the appetite of each. Pricing is reportedly 10% fixed plus 4% payment-in-kind. One deal tracker notes the lead also offered variable rate pricing that would roughly amount to 10%, but most investors have wanted fixed. Potential investors reportedly include ArcLight Capital Partners, Fortress Investment Group, Harbert Power, LS Power, Trust Company of the West and Union Bank of California. Officials at the firms either declined comment or did not return calls. Calls to Merrill officials were not returned. A spokeswoman for First Reserve Corp., which owns 90% of Longview, declined to comment or make an official available, and calls to GenPower Holdings (10%) were not returned.
The owners opted for the mezzanine financing after terminating an auction for 49% of the company (PFR, 8/22). That auction came after a $450 million mezzanine financing was put on hold last year to test the waters of an auction. The project is set to come online in the spring of 2011. It has a five-year PPA for 300 MW with PPL Energy Plus and the remaining power will be sold into the western PJM market.
- paula