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FPL Energy has closed the $425 million financing backing construction of a 535 MW gas-fired plant in Johnston, R.I., ending a six-month syndication process. The process was drawn out because of general market concerns about merchant risk, which resulted in FPL guaranteeing 50% of the off-take contract (PFR, 2/26), and the complexity of the three-tranche non-recourse deal, says a banker.

InterGen has put the brakes on generation expansion plans and will focus instead on completing projects already in the works and maintaining its 20 existing power stations. A project financier at the Burlington, Mass.-based IPP says that adding additional capacity has become unnecessary with so many other projects already under construction. He adds, "We have looked at the market and we think that over the next one or two years, the best opportunities for us are either in maintaining or expanding our existing plants."

Mirant is threatening to term out a $1.125 billion one-year revolver that matures on July 17 in an attempt to get reluctant lenders to participate in a slimmed down renewal of the facility, say bankers approached by the Atlanta-based IPP and its lead arranger Credit Suisse First Boston. It is unclear whether the bludgeon approach will succeed, they add. So far some 10 lenders from a syndicate of 26 have agreed to commit to the new $750 million revolver, says an official close to the deal. Another official says at least $575 million has already been committed.

KBC Bank's efforts to syndicate a re-launched $120 million portion of the $226 million Perryville non-recourse loan have been halted in their tracks because of lukewarm interest from prospective lenders. Financiers who looked at the reworked deal, and passed on it, say credit questions about Atlanta-based Mirant, which remains the off-taker for the plant, despite having sold its equity stake in the project to co-sponsor Cleco, were the key factors in the subdued interest. "Nobody wants to do Mirant [paper] and there is a taint to the deal," he says, referring to the drawn out syndication and the fact the deal had to be reworked (PFR, 4/8). An official at KBC declined comment.

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El Paso last week issued $500 million of three-year equity-linked notes as part of a plan announced May 29 to maintain its Baa2/BBB credit rating and bolster its balance sheet. Bruce Connery, v.p. of investor relations, says the sale completes its plan to raise $1.5 billion in equity capital He adds that in mid-June the Houston-based energy concern sold 45 million shares of common stock valued at $1.01 billion.

Calgary, Alberta-based TransAlta has made its first foray into the U.S. fixed-income mart with a $300 million offering of 10-year senior unsecured notes, a process the company says involved probably the toughest financing due diligence it's ever had to deal with. Frank Hawkins, director and assistant treasurer, says aside from it being the company's first U.S. foray, the market focus on issues surrounding trading and accounting meant investors and lead banks fired in lots of questions. "It was grueling at times," he reflects.

U.K. green energy and waste management outfit Waste Recycling Group plans to initiate fund raising later this month for a GBP100 million ($152 million) plus project in southern England. An official close to the situation says the Doncaster-based company plans to send out an information memorandum shortly to interested banks inviting them to bid to arrange non-recourse financing for the construction of a waste incinerator and associated power plant at Allington, Kent.

Grundon Waste, an Oxford-based waste management and renewable energy concern, has shortlisted three banks, including NIB Capital, to arrange financing for the construction of a GBP90 million ($130 million) 30 MW waste-fueled power plant near Heathrow Airport, say people familiar with the project. Grundon and its financial advisorErnst & Young began the search process over a year ago and hope to select a lender shortly, says one official. He declined comment on why the process had dragged on for over a year, but says Grundon is looking to seal debt financing by year-end.

Bonds Issue Date Maturity Issuer Amount Offer Price ($mil) Type of Coupon (%) Security Spread Moody's to Treasury S&P Bookrunner(s) 6/27/02 7/15/07 Georgia Power Capital Trust 300 99.91 Senior Notes 4.875 - A2 A BofA 6/27/02 6/27/05 Kospo(KEPCO/South Korea) 58.4 100 Fxd/Straight Bd 6.32 - - - HANA 6/27/02 6/27/05 Kospo(KEPCO/South Korea) 25 100 Float Rate Nts Floats - - - HANA 6/27/02 7/15/07 Texas Eastern Transmission 300 99.866 Bonds 5.25 123 A2 A+ JP Morgan/Salomon 6/27/02 7/15/32 Texas Eastern Transmission 450 99.585 Bonds 7 153 A2 A+ JP Morgan/Salomon 6/27/02 10/1/16 Utility Contract Funding 830 99.945 Sr Sec Bonds 7.944 313 Baa1 BBB- Morgan Stanely 6/28/02 7/1/12 Aquila 500 99.255 Notes 10.875 623 Baa3 BBB CSFB 6/28/02 12/28/05 Nederlandse Waterschapsbank 250 101.92 Fxd/Straight Bd 4.25 - Aaa AAA ABN AMRO 6/28/02 7/15/12 Transcontinental Gas Pipe Line 325 97.575 Notes 8.875 448 Baa2 BBB Salomon 7/1/02 7/15/07 Mirant 370 100 Cvt Senior Nts 5.75 - Ba1 BBB- BofA/CSFB/Citi/Salomon M&A Date Announced Date Effective Target Target Advisor Target Country Acquiror Acquiror Advisor Acquiror Country Value ($mil) 6/27/02 6/27/02 DTE Clover - U.S. Pettingell - U.S. - 6/27/02 - Sithe New England Holdings Merrill Lynch U.S. Exelon Credit Suisse First Boston U.S. 1,693 6/27/02 6/27/02 Sri U-Thong - Thailand Bangkok Bank PCL - Thailand 6.9 6/28/02 6/28/02 Green Mountain Energy - U.S. Undisclosed Acquiror - N/A 12.5 6/28/02 6/28/02 National Utilities - U.S. Philadelphia Suburban - U.S. 3.7 6/28/02 6/28/02 Regional Power Generators - U.K. Centrica - U.K. 57.035 7/1/02 7/1/02 Forbrukerkraft - Norway TXU - U.S. 5.132 Source: Thomson Financial Securities Data Company. For more information, call Rich Peterson at (973) 645-9701.