GE Energy Financial Services, a unit of General Electric Company (GE), announced that it will provide $73 million for three merchant generating facilities owned by an affiliate of LS Power in Illinois and Connecticut.
LS Power is a power generation and transmission group, which is involved in the development, construction, or operations of over 20,000 megawatt (MW) of power generation throughout the United States.
LS Power will utilize the credit facility to recapitalize the three gas-fired plants. These plants are grouped as LSP Park Generating, LLC and have a total capacity of 1,065 MW.
Under the terms of the contract, the company will provide a senior secured credit facility, comprising a term loan and revolving credit facility. This deal amply demonstrates GE’s ability to provide loan by evaluating the value of assets amid recovering power markets.
As a consequence of this exposure, management expects to expand the company’s lending portfolio of natural gas-fired power plants. Currently, GE Energy Financial Services’ natural gas power portfolio has invested $6.3 billion in plants having a capacity of 72 gigawatts.
In April, GE Energy Financial Services provided a $125 million senior secured credit facility to LS Power. LS Power plans to recapitalize Port River Funding LLC with the credit facility. Port River Funding LLC includes two gas-fired peaker plants, with a total capacity of 1665 MW. The company also served as co-lead arranger for Port River Funding in 2009.
GE has products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products. Since its incorporation in 1892, the company has developed or acquired new technologies and services that have considerably broadened the scope of its activities. United Technologies Corporation (UTX) is a major competitor.
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