Invenergy lines up financing for 1,485-MW Lackawanna project in Pennsylvania

Invenergy on Dec. 29 announced that it has completed project financing for the Lackawanna Energy Center (LEC), which is currently under construction in Jessup, Pennsylvania.

The LEC is a 1,485-MW, natural gas-fired, combined-cycle plant. It is expected to begin commercial operations in mid 2018. Equipped with General Electric’s latest H-class gas turbine technology, the LEC will feature the highest-efficiency combustion turbines in their class.

First Reserve, a leading private equity and infrastructure investment firm exclusively focused on energy, is a co-owner of the LEC with Invenergy. Approximately US$1 billion of senior debt financing facilities was arranged. BNP Paribas, GE Energy Financial Services and MUFG acted as Initial Coordinating Lead Arrangers, and Prudential Investment Management Services LLC acted as Institutional Placement Advisor for the Senior Secured Credit and Note Facilities. The credit facilities will provide for construction, term and working capital financing for the project.

Commonwealth Bank of Australia, ING Capital LLC and Hana Financial Investment Co. acted as Coordinating Lead Arrangers.

“We’re pleased to announce the completion of financing of the Lackawanna Energy Center,” said Jim Murphy, Chief Financial Officer and Operating Business Group President at Invenergy. “This facility has significant advantages over other facilities in development in the PJM interconnect, due to its state of the art GE equipment selection, its unique locational benefits, and its contracting arrangements for the gas supply and capacity and energy sales.”

Mark Florian, Head of Infrastructure Funds for First Reserve, added: “First Reserve has a long history of teaming with strong partners to invest in critical infrastructure assets around the world. We are excited to partner with Invenergy on the Lackawanna Energy Center to continue to drive results on behalf of our investors.”

The Lackawanna Energy Center is being constructed by Kiewit Corp. Once operational, Lackawanna Energy Center will be operated and managed by Invenergy.

Invenergy’s home office is located in Chicago and it has regional development offices in the United States, Canada, Mexico, Japan and Europe. Invenergy and its affiliated companies have developed more than 13,000 MW of projects that are in operation, construction or advanced development, including wind, solar, natural gas-fueled power generation and energy storage projects.

First Reserve is a leading global private equity and infrastructure investment firm exclusively focused on energy. First Reserve has completed approximately 600 transactions (including platform investments and add-on acquisitions), creating several notable energy companies throughout the firm’s history.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.