Cogenerators stretch the capital markets

Authors :: Robinson, Danielle
Source :: Petroleum Economist. June, 1993, Vol. 60 Issue 6, p30, 4 p.
Publication Year :: 1993
Abstract: Developers of independent power generation plants are taking the non-traditional path to finance their projects. A precedent move was Sithe Energies's offering of $717 million worth of 144a notes and bonds in 1993 after it obtained a BBB investment-grade rating. Meanwhile, the merits and disadvantages of the dual tranche mechanism and a mini-permanent loan structure remain under debate now that banks prefer short-term club-financing arrangements.<br />Independent power generation projects are being planned worldwide. But to finance them, the developers are starting to look increasingly for non-bank sources of funds. Danielle Robinson, in New York, looks [...]