InterGen N.V. (the "Company") announced today that it is seeking to arrange a new syndicated senior secured term loan facility in an aggregate principal amount of $500 million (the "New Term Loan"). The New Term Loan will be jointly and severally guaranteed by certain subsidiaries of the Company. The New Term Loan will also be secured, together with the New Notes, New Revolving Credit Facility (USD) and New Revolving Credit Facility (GBP) (in each case, as defined below), and certain additional permitted indebtedness of the Company, on a pro rata basis, by pledges or charges, as applicable, of the capital stock (or other equity interests) of certain subsidiaries of the Company.
In addition to the New Term Loan and New Notes, the Company expects to enter into two fully-revolving credit facilities—a "New Revolving Credit Facility (USD)" and a "New Revolving Credit Facility (GBP)"—in an aggregate amount equal to the U.S. dollar equivalent of $500 million. Under these facilities, senior secured revolving credit loans, swingline loans and letters of credit will be available from time to time to be drawn and issued in U.S. dollars and other currencies (in the case of the Revolving Credit Facility (USD)) and in pounds sterling (in the case of the Revolving Credit Facility (GBP)). Loan proceeds drawn under these two revolving credit facilities may be used by the Company and certain of its subsidiaries to fund working capital and for other general corporate purposes. The letters of credit available to be issued thereunder will provide credit support for the Company and certain of its subsidiaries in respect of existing development and construction loans, hedging instruments related to interest rate and foreign exchange risk and other general corporate purposes.
The Company intends to use the net proceeds from the New Term Loan, together with the proceeds from a $700 million equity contribution from the Company's Sponsors (as defined below) and an $800 million offering of senior secured notes (the "New Notes"), to (a) pay the consideration, accrued and unpaid interest and related fees and expenses in connection with the tender offer for any and all of its outstanding 9.500% Senior Secured Notes due 2017, 9.000% Senior Secured Notes due 2017 and 8.500% Senior Secured Notes due 2017 (collectively, the "Existing Notes") that was also announced today, (b) redeem any Existing Notes that may continue to be outstanding following expiration of the tender offer, (c) repay in full the Company's existing corporate debt facility, including payment of any premium and accrued and unpaid interest related thereto, (d) for fees and expenses incurred in connection with these transactions and (e) for other general corporate purposes.
About the Company
The Company is a global power generation firm with eleven power plants in operation, representing a total generation capacity of 7,686 MW (6,101 net ownership MW). These power plants are located in the United Kingdom, the Netherlands, Mexico and Australia. The Company is owned 50% by the Ontario Teachers' Pension Plan and 50% by China Huaneng Group/Guangdong Yudean Group (collectively, the "Sponsors").
Investor Contact
Corbie Kiernan
Manager, Public Affairs Investor Relations
InterGen
30 Corporate Drive
Burlington, MA 01803
United States of America
Office: 1-781-993-3172
ckiernan@intergen.com
Forward-Looking Statements
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties, and assumptions. Consummation of the transactions contemplated herein are subject to numerous conditions, some of which are beyond the Company's control. Therefore, no assurance can be given that such transactions will be consummated on the terms described herein or at all. The Company assumes no obligation to update the information contained in this press release due to changes from time to time in the terms of such transactions or for any other reason.
Contacts:
InterGen
Corbie Kiernan, 781-993-3172
