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OPC Energy Subsidiary CPV Secures $825 Million Financing For Shore And Maryland Power Plants
OPC Energy unit CPV secures $825 million financing for Shore and Maryland power plants
Key points
- The Shore and Maryland plants are combined-cycle natural gas plants operating in the PJM electricity market.
- The revolving facility carries SOFR plus 2.25%, and the letter-of-credit facility has a fixed issuance rate of 2.25%.
- The revolving and letter-of-credit facilities both have five-year terms, while the Term Loan B has a seven-year maturity.
Why it matters. The refinancing is intended to increase financial flexibility and free cash flow for future growth while lowering the cost of debt at the two plants.
CPV, the U.S. subsidiary of OPC Energy, has secured an $825 million financing package for its Shore and Maryland natural gas power plants. It includes a $625 million Term Loan B carrying SOFR plus 2.5%, a 75-basis-point cut from the previous rate. The deal refinances existing project debt and funds an approximately $130 million dividend to CPV Group at closing.
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OPC Energy Subsidiary CPV Secures $825 Million Financing For Shore And Maryland Power Plants
OPC Energy's U.S. subsidiary CPV has secured an $825 million financing package for its Shore and Maryland natural gas power plants, consolidating existing project debt while reducing borrowing costs and supporting a $130 million distribution to CPV Group. The post OPC Energy Subsidiary CPV Secures $825 Million Financing For Shore And Maryland Power Plants appeared first on Pulse 2.0 . By Amit Chowdhry Today at 12:02 AM OPC Energy’s U.S. subsidiary CPV has secured an $825 million financing package for its Shore and Maryland natural gas power plants, consolidating existing project debt while reducing borrowing costs and supporting a $130 million distribution to CPV Group. CPV Generation Holdings entered into the financing agreement with a syndicate of lenders for the two fully owned facilities. Shore and Maryland are combined-cycle natural gas plants operating in the PJM electricity market. The Shore facility has 725 MW of generation capacity, while Maryland has 745 MW, giving the two plants approximately 1,470 MW of combined capacity. The financing package includes a $625 million Term Loan B, a $125 million letter-of-credit facility, and a $75 million revolving credit facility. The Term Loan B has a seven-year maturity, no scheduled amortization, and an interest rate of SOFR plus 2.5%. That spread represents a 75-basis-point reduction from the previous rate of SOFR plus 3.25%. T.