This article appears courtesy of Institutional Investor
Source: Power Finance & Risk
Mark DeCambre
Morgan Stanley has won the lead slot to arrange the non-recourse debt bankrolling Madison Dearborn and US Power Generating's $975 million bid to purchase Orion Power New York from Reliant Resources. Morgan could aim to structure loans in the neighborhood of $600-800 million, sources say, but the size and exact character of the package is still to be hammered out. News of the duo's winning bid for the assets was first revealed Sept. 30 on PFR's Web site (www.iipower.com).
Pending New York state as well as federal regulatory approval, syndication of the debt most likely will kick off sometime in the first quarter prior to the expected finalization of the transfer, says one official close to the deal.
Morgan Stanley scored the lead nod because it inked a PPA with the purchasers, which has it buying about 1.1 GW of capacity over the next two years. Additional details about the PPA could not be learned.
An official at Morgan Stanley declined to comment or be identified. Jacob Worenklien, ceo at US Power Generating in New York, also declined comment.