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The successful syndication of InterGen's EUR625 million ($622 million) Rijnmond financing will likely hinge on financiers' assessment of the merchant risks incorporated in the 18-year non-recourse loan.

Pepco Holdings this week pulled the trigger on a $1.35 billion note issue, a downscaled total from a planned $1.5 billion offering reflecting the market's lack of appetite for a two-year tranche. Tony Kamerick, v.p. and treasurer in Washington, says the tranche was cut because the market was not receptive to short term paper. The $1.5 billion deal was pulled after market spreads ballooned (PFR, 8/12). "It was a tough experience," Kamerick reflects on the fact the initial deal stalled. "It was the perfect storm we went out in. In the end we did very well to get it done."

Steve Malcolm, chairman, president and ceo of Williams Cos told attendees at Lehman Brothers' CEO Power/Energy Conference in New York that the company would likely announce a sale of a portion of its energy marketing and trading business within 30 days. He says the Tulsa, Okla.-based firm already has received several attractive offers. He declined to name the bidders, revealing only that they include financial players, utilities and major oil companies.

Tampa Electric, a subsidiary of TECO Energy, increased the size of a bond offering late last month by $150 million to $550 million as debt investors returned to the recently shunned sector. Donna DiDonato, an analyst at Fitch Ratings in New York, says Tampa, Fla.-based TECO upsized the deal, issued on Aug. 21, because of improved investor sentiment. She adds the success of the deal is significant for the market as a whole as it was the first power sector offering in quite some time to be well received. "The bond offering was indicative of the market turning around for the better."

Embattled Houston energy trader Dynegy is looking to enter a joint venture to bolster the position of its marketing and trading arm, Wholesale Energy Network. Dynegy President Steve Bergstrom told attendees at Lehman Brothers' CEO Energy/Power Conference in New York yesterday the company has been locked in discussions for the past six weeks with several financial players and rival power companies about forming a J.V. He would not reveal the identity of the companies.

Constellation Energy Group tapped the fixed income market for $500 million in seven-year senior notes two weeks ago, locking in a liquidity cushion that reduces its need to tap the short-term commercial paper market. The rationale for the issue was that it allowed the Baltimore, Md.-based utility holding company to obtain longer-term funding at a favorable rate, says spokeswoman Rose Kendig, adding Constellation has no further comment on the financing.

Mansoor Sheikh, former head of European power trading at Credit Suisse First Boston, has reportedly joined Goldman Sachs' energy desk in London. Power trading officials at Goldman declined to comment and Sheikh could not be reached.

Pepco, a newly created utility holding company formed from the merger of Potomac Electric Power and Conectiv, is looking to relaunch a $1.5 billion bond offering that it pulled at the end of July because of weak pricing. An official who has spoken to the company about its plan says the utility intends to bring the deal to market shortly after the Labor Day weekend. He says, "The tone of the bond market for utilities is improving so Pepco's reasoning is to do the deal while the market is receptive and it can get decent pricing. "

Tampa Electric, a subsidiary of TECO Energy, increased the size of a bond offering late last month by $150 million to $550 million as debt investors returned to the recently shunned sector. Donna DiDonato, an analyst at Fitch Ratings in New York, says Tampa, Fla.-based TECO upsized the deal, issued on Aug. 21, because of improved investor sentiment. She adds the success of the deal is significant for the market as a whole as it was the first power sector offering in quite some time to be well received. "The bond offering was indicative of the market turning around for the better."

* German utility RWE's hopes of selling its Heidelburger Druck business this year have dwindled, following an announcement that sales at the printing machinery unit have fallen. RWE CEO Deitmar Kuhnt has repeatedly pledged to sell its 50% stake in the $2.9 billion business by yearend (Financial Times, 9/4).