Boston, MA - October 25, 2001
InterGen announced the financial close of credit facilities for the Redbud Energy Project, an 1100-megawatt (MW) natural gas-fired, combined cycle power facility located near Luther, Oklahoma. With an estimated cost of approximately $740 million, Redbud is one of the single largest one-time private sector investments in the state of Oklahoma in over a decade.InterGen has successfully arranged non-recourse commercial bank senior debt financing for the construction and operation of the Redbud project. Citibank Salomon Smith Barney and Dresdner Kleinwort Wasserstein are the joint lead arrangers under the project's Credit Agreement executed in late September. The finance plan has been very well received by the market and is based on an innovative borrowing base approach that is being successfully replicated and applied to finance other development projects that InterGen plans in North America.
Intergen Completes Financing And Breaks Ground On 1100-megawatt Redbud Energy Project In Oklahoma
"We are very enthusiastic to be moving forward with Redbud. This project represents another significant step forward in strengthening our foundation for rapid expansion in the North American power market," said Carlos Riva, President and CEO of InterGen.
Bechtel Power will build the facility under a turnkey contract. Redbud is expected to begin commercial operations by mid-2003. Natural gas will be supplied to the plant by both the ONEOK and Williams natural gas transportation pipelines, and the necessary cooling water will be supplied by the North Canadian Wastewater Treatment Plant. El Paso Merchant Energy will provide energy management services to the project.
"As InterGen's second large-scale project in the United States, Redbud establishes our presence in the southwest market and further allows us the opportunity to apply our international development expertise in the U.S.," said Mike Hogan, President of InterGen North America.
The project will have a significant positive economic impact on the area, creating more than 800 construction period jobs and, once the facility goes on line, Redbud will permanently employ a staff of 30 permanent employees. Today, InterGen officials, state and local elected leaders and local project supporters will celebrate the official groundbreaking of the Redbud Energy Project.
InterGen is a global power generation firm. The company is operating or building a total of 18 power stations worldwide representing 13,915 MW. It also has projects in advanced development representing an additional 3,425 MW, and more than 9,000 MW in early stage development. The company has projects operating, under construction and/or in advanced development in the United States, the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Turkey, Brazil, Australia and the Netherlands. InterGen is a Shell-Bechtel venture.