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Tractebel has sealed a EUR475 million ($475 million) 13-year project loan refinancing the construction costs of a Turkish power plant. The deal was structured as a club deal between ABN AMRO, BNP Paribas, Credit Agricole Indosuez, Fortis Capital, ING, Société Générale and Westdeutsche Landesbank, which each took equal stakes (PFR, 11/25). Pricing ranged from 12 basis points over Euribor on a portion guaranteed by Ex-IM Bank to a 167 basis point spread on a tranche with political cover from theWorld Bank's MIGA arm. The deal also offers up front fees of 60 basis points across the board and commitment fees ranging from 15-37.5 basis points.

The Latin American utility sector is unlikely to witness many mergers or acquisitions this year, forecast market watchers, because potential bidders are being scared away from the region by economic volatility, regulatory and political uncertainty and fears of further currency devaluation.

"It was the best of times. It was the worst of times." So wrote novelist and renowned fence-sitter Charles Dickens of the French Revolution. The unparalleled upheaval in the transatlantic power industry this past year witnessed a similar dichotomy of sentiment from industry participants:

A sharp rise in volatility, widening bid/offer spreads and a dearth of players willing to take a market-making role are putting strains on the once robust Scandinavian power market. One London trader who declined to be named says his firm has pulled out of NordPool because liquidity has dried up and he fears the situation could deteriorate further with three of Nordpool's five market-makers recently announcing plans to quit the role by next spring.

Oncor Electric Delivery, a regulated utility unit of TXU, increased the size of a recent senior secured note offering by $150 million to $850 million because of strong demand from fixed-income investors. Carol Peters, a TXU spokeswoman, says, "There was such a strong appetite for the deal that we thought we'd sell even more notes and [earmark] the remaining $150 million for general corporate purposes."

Exelon reportedly has relaunched acquisition discussions with its smaller Midwest utility neighbor DQE barely two months since their last round of talks bit the dust over price, says a New York investor in touch with one of the parties. The pair failed to strike a deal in November because of haggling over price, but both companies have softened their stance and are committed to merging, explains the investor. A successful conclusion to the talks would create an approximately $18.1 billion energy concern, given their respective stock market valuations of $17 billion and $1.1 billion. Joe Balaban, a DQE spokesman, denied it is in talks with Exelon and Donald P. Kirchoffner, an Exelon spokesman, declined comment.

Bonds Issue Date Maturity Issuer Amount ($mil) Offer Price Type of Security Coupon (%) Spread To Treasuries Moody's S&P Bookrunner(s) 12/11/02 4/1/32 Constellation Energy 100 100.464 Notes 7.6 267 Baa1 BBB+ Lehman/SSB 12/11/02 4/1/12 Constellation Energy 100 102.781 Notes 7 259 Baa1 BBB+ Lehman/SSB 12/12/02 2/1/13 Consolidated Edison 500 99.823 Debentures 4.875 90 A1 A+ Morgan Stanley/SSB 12/12/02 12/1/28 Old Dominion Elec Cooperative 300 100 Fst Mtg Bonds 6.21 220 A3 A+ JPM 12/13/02 1/4/08 Kowepo 150 99.842 Fxd Straight Bd 4.66 165 NR BBB+ ABN AMRO/Lehman 12/16/02 12/15/09 Entergy 267 100 Senior Notes 7.75 405 NR NR Morgan Stanley 12/17/02 6/15/23 Choctaw Generation 95 100 Equip Tr Certs 8.368 - Baa3 BBB- JPM/SSB 12/17/02 6/15/30 Choctaw Generation 227 100 Equip Tr Certs 9.516 - Baa3 BBB- JPM/SSB 12/17/02 12/15/10 Illinois Power 550 97.48 Mortgage Notes 11.5 829 B3 B Merrill/CSFB 12/18/02 12/23/22 EDP Finance 95.5 100 Fxd Straight Bd 2.661 - NR NR CSFB 12/18/02 12/15/22 Empire District Electric 50 100 Notes 7.05 204 Baa2 BBB- BofA M&A Date Announced Date Effective Target Target Advisors Target Country Acquiror Acquiror Advisors Acquiror Country Deal Value ($mil) 12/11/02 - FirstEnergy Coal Power Plants - U.S. DTE Energy - U.S. - 12/11/02 - Guangzhou Dvlp - China Guangzhou Dvlp - China 7.587 12/12/02 - Ares Energie CSFB Germany Riva Energie - Germany - 12/12/02 - Lietuvos Dujos(Lithuania) - Lithuania Gazprom - Russian Fed - 12/12/02 - Texas Genco Holdings - U.S. Shareholders - U.S. - 12/12/02 - Valmieras Energija - Latvia Jauna Fabrika - Latvia - 12/13/02 - AES Mount Stewart Power - Australia Origin Energy - Australia 52.61 12/13/02 12/13/02 Algonquin LNG - U.S. KeySpan LNG - U.S. 28 12/13/02 - Fluxys - Belgium Electrabel - Belgium - 12/13/02 - Tractebel Elyo - Belgium Electbrabel - Belgium - 12/16/02 - Bohai Group - China Shandong Hengshen - China 0.724 12/16/02 - Bohai Group - China Shandong Hengshen - China 0.454 12/16/02 - Chiahui Power - Taiwan J Power Investment Netherlands - Netherlands - 12/16/02 - Gamesa Wind Parks BNP Paribas Italy Electrabel - Belgium 203.66 12/16/02 - Loy Yang Power - Australia Tenaga Nasional Bhd - Malaysia - 12/17/02 - AES Kelvin Power - South Africa CDC Globeleq - U.K. - 12/17/02 - Chiahui Power - Taiwan EPDC(Ministry of Fin/Japan) - Japan 49.44011/30/00 Source: Thomson Financial Securities Data Company. For more information, call Rich Peterson at (973) 645-9701.

Brussels-based Tractebel has drafted in a seasoned finance staffer to its Houston-based U.S. operation to add some muscle to its attemps to sort out the stuttering progress of nearly $2 billion in planned non-recourse power plant financing. The decision to parachute in Geert Peeters reflects Tractebel's inability to execute a $1.6 billion multi-plant program deal and a $220 million loan to finance its Ennis plant in Texas, say New York financiers. Peeters, who recently took up the new position of v.p. in charge of financing, was previously covering financing in the Middle East. Peeters did not return calls.

CenterPoint Energy is testing the convertible bond waters with a view to bringing a $600 million offering to market. One buyside official who has been in contact with the company says CenterPoint's overtures have so far amounted to discreet pre-marketing to gauge potential demand. The proceeds would likely be earmarked to meet mandatory reductions of $600 million in February and then again in June related to its $3.85 billion in fully drawn credit facilities, the official says. Leticia Lowe, spokeswoman in Houston, says the company is evaluating financing alternatives, but as a matter of policy is not commenting on what is under consideration.

Merrill Lynch has released Vladimir Roussinov, v.p. in its London-based energy and utilities team, as part of staff cut backs at the bulge bracket investment bank. Roussinov, whose focus is the Russian power market, says he was released earlier this month and has yet to find a new position. He was most recently involved in advising Russia's state owned power utility UES on the deregulation of the Russian power market industry.