Ripon Cogeneration LLC Successfully Completes Refinancing of Project Debt
HOUSTON, TX – March 24, 2005 — Ripon Cogeneration LLC (“Ripon”) announced today the successful closing of a $69.5 million bank facility lead by Union Bank of California (“Union Bank”). The project finance facility, which includes a combination of debt and letters of credit, will mature in 2018 with pricing based on LIBOR plus a margin. The facility replaces a term loan B financing put in place in early 2004.
“The opportunity was too great for us to pass up,” said Scott Harlan, Chief Financial Officer of Ripon. “The aggressiveness of the bank market enabled us to realize a substantial savings while at the same time extending the life of the debt by several years.”
The financing is secured by the assets of Ripon which include two power projects, Ripon Cogeneration and San Gabriel Cogeneration, both located in California. The projects sell power under long term contracts to PG&E and Southern California Edison, respectively.