James Bartlett, a
Director in the Global Energy Group at Credit Suisse First Boston, has
played a central role in major power financings for the firm, including
the two largest project financings completed in the U.S. Independent Power
Sector in 2000:
(i) the $1.147 billion
financing for Midwest Generation (a subsidiary of Edison Mission Energy)
(ii) and the $3.1 billion bank financing for Mirant's acquisition of a
5,100 MW portfolio of generating assets
from Potomac Electric.
The Mirant transaction
also included a $1.224 billion capital markets financing, representing
the largest generation company issue ever in the bond markets.
Credit Suisse First
Boston worked on major financings in conjunction with continued consolidation
in the IPP sector, including over $6 billion in facilities in support
of Calpine and their acquisitions of Skygen Energy and numerous other
power projects. Credit Suisse First Boston currently is also raising an
aggregate $3.0 billion for NRG Energy to support the acquisition of LS
Power and other growth initiatives.The outlook for 2001 appears to be
quite active and driven by the following factors:
(i) M&A activity
(ii) greenfield and brownfield development and
(iii) introduction of new generation/wholesale energy companies spun off
from integrated utilities.
Bartlett was particularly
keen on Credit Suisse First Boston's development of two major new sources
of capital for the power sector, Credit Suisse First Boston's $1.7 billion
project finance fund (providing an alternative for issuers seeking long
dated 20+ year maturities, delayed deliveries and capital markets style
execution) and Credit Suisse First Boston's $5.0 billion Project Finance
Loan Program (providing fully underwritten bank facilities with firm pricing
to investment grade projects in the United States and Canada)
. Bartlett sees an
increasing need for these products by issuers to support their significant
capital needs associated with their large acquisitions, expansion plans
or genco recapitalizations and refinancings. He also sees a continuing
trend towards larger transactions, as investors and lenders look to large
liquid issuers.
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