GenOn Holdings Inc. closed a seven-year, $520 million term loan B, which is secured by gas-fired plants under its Heritage Power LLC portfolio.
The financing also included nearly $100 million in revolver and letter of credit facilities to support Heritage. The independent power producer used proceeds to repay in full the existing $400 million in senior secured second-lien notes and to refinance its revolving credit facility.
"The new Heritage financing raises incremental capital secured by a smaller portfolio of assets as Heritage investors recognized the attractiveness of the contracted cash flow profile of the portfolio's assets as well as its low-cost operations," GenOn CFO Darren Olagues said in an Aug. 2 statement.
GenOn emerged from Chapter 11 bankruptcy in December 2018.
The ring-fenced Heritage plants include Blossburg, Brunot Island, Gilbert CC, Hamilton, Hunterstown, Mountain, New Castle, Niles, Orrtanna, Portland, Sayreville CT, Shawnee CT, Shawville, Titus, Tolna and Warren CT. These assets are located in the PJM Interconnection market.