Boston, MA - December 17, 2001
InterGen announced the financial close of credit facilities for the Magnolia Energy Project, a 900-megawatt, natural gas-fired, combined cycle power facility located near the town of Ashland in Benton County, Mississippi. Magnolia is scheduled for commercial operations in July of 2003.InterGen, a joint venture of Shell and Bechtel, raised $430 million of financing for Magnolia, consisting of a $405 million loan plus a $25 million LC facility. Magnolia is InterGen's third North American project utilizing a borrowing base concept. The financing was very well received, testifying to the strong acceptance of InterGen's borrowing base approach. By standardizing the documentation, InterGen was able to fund the project in less than two months from the time that the financing was commenced.
Intergen Completes Financing On 900-megawatt Magnolia Energy Project
The financing was led by ABN Amro and Credit Lyonnais with HypoVereinsbank and Credit Agricole Indosuez acting as arrangers, and Citibank, Nord LB, Fuji, Bank of Tokyo Mitsubishi, Bank of Scotland, and Abbey National acting as co- arrangers. The financing was further supported by BNP Paribas, Deutsche Bank, and Co-Bank.
"We are very proud to have brought Magnolia to financial close. Magnolia is the fourth U.S. based facility on which we have begun construction this year and represents a significant step forward in our North American expansion," said Carlos Riva, president and chief executive of InterGen.
Bechtel Power will build the facility under a turnkey contract. El Paso Merchant Energy will provide energy management services to the project.
The project will have a significant positive economic impact on the area, creating approximately 25 permanent, full-time operations jobs, as well as 500 to 750 peak construction period jobs. In addition, the first full year of operation of the Magnolia plant will bring approximately $1.5 million in property taxes to Benton County and its school district, increasing the county's property tax revenues by roughly 50 percent.
InterGen is a global power generation firm. The company is operating or building a total of 21 power stations worldwide representing 15,115 megawatts. It also has projects in advanced development representing an additional 2,760 megawatts, and more than 5,000 megawatts 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.