Natural gas-fired power plant secures $300mn funding

Five banks are providing $300 million in senior secured credit facilities for two 536 MW operating power blocks at Entegra Power Group’s natural gas-fired Gila River Power Station in Arizona.

The credit facilities, a six-year term loan and six-year revolver to be used for working capital and letters of credit, are for merchant power block 3 and contracted power block 4 of the Gila River Power Station. Each of the 536 MW power blocks, operating since 2003, uses two GE 7FA combined-cycle gas and GE steam turbines.

Gila River serves the Arizona, New Mexico, southern Nevada and southern California markets. The credit facilities support Gila River Power LLC, a unit of Entegra. Entegra is using the credit facilities’ proceeds to repay debt and address general corporate purposes.

WestLB AG’s New York branch, GE (NYSE: GE) and Union Bank acted as bookrunners. Together with BNP Paribas and CIT they also served as joint lead arrangers. Union Bank also serves as the administrative agent for the deal.

Read more financial news