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Société Générale is looking to arrange either a portfolio construction facility that would encompass a group of projects in both Mexico and the U.S. or a stand-alone corporate loan to finance the construction of a $350 million, 600 MW natural gas-fired plant at Mexicali on Mexico's Baja California peninsula. A New York project financier says that the French bank is in discussions with the project sponsor, Sempra Energy Resources, to determine the financing structure that would be the most cost effective. He would not discuss the other projects that would be financed under the umbrella structure. Bankers at SocGen declined to comment.

American Electric Power has delayed the deadline for submitting final bids in the auction of its U.K. supply and wires business SEEBOARD until the week of June 10, say officials familiar with its plans. The U.S. utility and its advisor Schroder Salomon Smith Barney had originally told bidders to submit offers by May 24 (PFR, 5/26) but pushed back the deadline because of tax implications linked to the sale, notes one banker. "The tax implications were known well in advance so it's all rather embarrassing for AEP and its advisor to shift the deadline at the eleventh hour," says another banker who's advising a bidder. Calls to AEP and SSSB were not returned.

AES has sought bids for its financially stricken Barry power plant in the U.K. and is also considering restructuring the financial terms of the 250 MW natural gas-fired plant if it cannot find an outright buyer, say London financiers. AES has not hired an investment bank to advise on the process, but has begun sounding out potential advisors, they add. Repeated calls to spokespeople at AES in Richmond, England, and Arlington, Va., were not returned.

Citibank and Barclays Capital launched syndication of a GBP429 million ($627 million) loan on behalf of the Spalding power project late last week and will hold a bank meeting to pitch the deal June 10. A financier close to the transaction says the underwriters are looking to syndicate the deal in one round and are seeking some 15 banks to commit GBP15-35 million apiece. He declined comment on pricing or fees.

Rapid City, S.D.-based Blacks Hills Corp. has ditched plans for a $200 million project finance bond and will tap the loan market instead. Richard Ashbeck, senior v.p. of finance, says as the company got further down the track toward a 144a deal the probable structure was starting to resemble bank debt terms and wasn't offering the flexibility Black Hills was seeking. As a result the company has ditched the plan and ABN AMRO, which was lined up to lead the offering, has been given the mandate for a $200-220 million construction plus five-year maturity non-recourse loan. The funds are for a 230 MW plant under development in Las Vegas (PFR, 3/24).

Wilmington, Del.-based Conectiv plans to send out a prospectus to potential bidders within the next couple of weeks outlining 720 MW of baseload fossil fuel-fired plants in the New Jersey, Pennsylvania and Maryland (PJM) power pool that it has put on the block. Lisa Quillici, v.p. of Commonwealth Energy Advisors in Boston, an advisor to Conectiv, says that following the issuance of a letter of interest, the company intends to secure initial bids by mid-July and conclude an auction late this summer. Quillici declined to comment on the potential bidders or the value of the assets. Calls to Jonathan Bailiff, director at Credit Suisse First Boston, which is also advising on the sale, were not returned. NRG Energy originally agreed to purchase these assets from Conectiv, but it terminated the agreement April 1.

TXU plans to use the $750 million it expects to raise in a common stock and convertible note offering due late last week to replenish its war chest for future acquisitions. Tim Hogan, investor relations manager in Dallas, says since the turn of the year the company has announced $600 million in acquisitions. The offering of five million equity units and 9.5 million of common stock will maintain its ability to look at other M&A opportunities. He adds that the intention has always been to keep some $800 million on hand and the latest financing will allow TXU to meet this goal.

Pittsburgh-based DQE is plotting a third quarter $250 million equity offering, which it will partially use to fund a planned 600 MW, $400 million natural gas-fired plant in Hopewell Township, Beaver County, Pa.

El Paso Merchant Energy has handed a pink slip to one of its lead U.S. weather staffers, Todd Johnson, as part of the retrenchment of its merchant trading operation. Market officials say the desk has been an active player in weather derivatives, particularly at the monthly end of the market, under lead trader Richard Igau and Johnson, who one official characterizes as having a trading role with an origination bent. "They have some good talent on the meteorology side," says one rival, noting that is at a premium in short-term trading. Igau did not respond to calls for comment. Norma Dunn, a spokeswoman at El Paso, says the company does not comment on the departure of individuals. El Paso is phasing in the trading cutbacks over the summer (see related story, page 4), and she notes that if staffers have been cut in a certain area, those remaining in that operation will likely be kept. Ahead of press time she was unable to provide comment on the plans for the weather desk.

Bonds Issue Date Maturity Issuer Amount ($mil) OfferPrice Type of Security Coupon (%) Spread to Treasury Moody's S&P Bookrunner(s) 05/23/02 06/07/27 London Power Networks 291.7 99.468 Fxd/Straight Bd 6.125 95 A2 A+ BarCap/HSBC 05/23/02 06/07/32 London Power Networks 218.7 99.17 Fxd/Straight Bd 3.125 90 A2 A+ BarCap/HSBC 05/23/02 06/03/09 RWE 92.6 99.391 Fxd/Straight Bd 5.625 72 A1 AA- WestLB 05/28/02 12/20/07 EDF 100 101.9 Fxd/Straight Bd 5.125 - Aaa AA+ RBoC/Citi M&A Date Announced Date Effective Target Target Advisor Target Country Acquiror Acquiror Advisor Acquiror Country Value ($mil) 05/23/02 - Pourslo Intl Dvlp - Canada BusinessWay International - Canada - 05/24/02 - EnXco Dresdner U.S. SIIF Energies JP Morgan France - 05/28/02 - Burlington Resources-Val Verde Merrill Lynch U.S. Texas Eastern Prod Pipeline - U.S. 444 05/28/02 05/28/02 EAG Mitteldeutschland - Germany E.On - Germany - Source: Thomson Financial Securities Data Company. For more information, call Rich Peterson at (973) 645-9701.