Intergen Completes Financing On 900-megawatt Magnolia Energy Project

Intergen Completes Financing On 900-megawatt Magnolia Energy Project

17 December 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.