International Power Completes US$1.375 Billion Financing of its US Merchant Generation Fleet
(London - 20 June 2001) International Power announces the closing of the $1.375 billion ANP Funding I, LLC credit facility to finance the 4,000 MW merchant power plant construction program in the United States of its wholly owned subsidiary American National Power. ANP Funding I comprises a five-year $1.215 billion floating-rate construction and term loan facility, a $120 million five-year revolving working capital facility, and a five-year $40 million debt service reserve letter of credit facility.
ANP Funding I has been assigned investment grade credit ratings by Standard & Poor's (BBB-) and Moody's (Baa3).
"This financing will help our new US merchant generation fleet fulfil its mission of providing cleaner and more reliable low-cost electricity than the existing power plants in their respective markets", said International Power CEO Peter Giller. "I would like to thank the strong group of relationship banks participating in this financing for their support", he added.
The financing supports a portfolio of five generating stations located in Massachusetts and Texas. These plants include Blackstone, Bellingham and Milford in Massachusetts, and Midlothian I&II and Hays in Texas. Of this 4,000 MW portfolio, 1,500 MW are in operation, and the remainder is in start-up testing or advanced construction. We expect the entire portfolio will be in commercial service by the end of Q1 2002. The construction programme benefits from economies of scale arising through the use common turbine technology and a single Engineering Procurement and Construction (EPC) contractor for all plants. The ANP Funding I units are characterized by relatively high efficiency and low capital cost.
Proceeds from the construction and term loan will be used to reimburse ANP Funding I for a portion of the equity investments made to date to finance the building and related development costs of the five generating stations and to fund future capital costs associated with the projects. The financing also will enhance the financial flexibility of International Power and help to fund our future development activities worldwide.
The arranger banks for this financing are ABN Amro, Citibank, Deutsche Bank, ING Barings, Societe Generale, Royal Bank of Scotland and Toronto Dominion. Other members of the syndicate are Abbey National, KFW, ANZ, National Australia Bank, Fortis Bank, Royal Bank of Canada, Bank of Scotland, Sumitomo Mitsui, Arab Banking Corporation and IKB.
For additional information:
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| Media contact: |
Aarti Singhal |
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+44 (0)20-7320-8681 |
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| Investor contact: |
Grant Jones |
| (Europe) |
+44 (0)20-7320-8619 |
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| Media & Investor contact: |
Paul Parshley |
| (United States) |
+1 508-922-3124 |
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Notes to editors
International Power is one of the world's leading independent electric generating companies with over 8,550 MW (net) in operation, 3,000 MW (net) under construction and approximately 8,000 MW (net) in advanced development. Among the countries where International Power has operating facilities are Australia, the United States, the United Kingdom, the Czech Republic, Portugal, Spain, Turkey, Malaysia, Pakistan, and Thailand. International Power was created from the demerger of National Power, and its shares began trading independently on the London Stock Exchange and as ADRs on the New York Stock Exchange on 2 October 2000. The ticker symbol on both stock exchanges is "IPR".
ANP Funding I, LLC is a wholly owned subsidiary of American National Power. Inc., which, in turn, is a wholly owned subsidiary of International Power.