Fri 11/12/2021 17:56 PM
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Panda Stonewall, led by its main stakeholder, Ares Management, has completed a refinancing of the power plant’s outstanding loan facilities, which totaled $485 million at the end of September, sources said. As part of the recapitalization, Panda Stonewall’s main stakeholder, Ares Management, is expected to contribute about $60 million of new money to the project and equitize its holdings in the HoldCo mezzanine and old term loans, as reported.

The company’s new debt facilities include a five-year L+600 bps $450 million term loan and a $40 million revolver, the sources said. Some of the holders of Panda Stonewall’s original loans rolled over into the new facilities, the sources noted.

The Virginia natural gas power plant’s previous capital structure included a $200 million L+550 bps B-2 bank loan and a $300 million L+550 bps floating-rate term B-1 bank loan, both of which were due to mature tomorrow, Saturday, Nov. 13.

Ares Management has been accumulating substantial positions in Panda Stonewall’s term loans and $160 million HoldCo secured mezzanine debt ahead of the Nov. 13 maturities, as reported. The investment fund holds about $132 million of the HoldCo paper, which it has marked down at $92 million, and about $20 million of the term loans.

The $300 million term B-1 bank loan was quoted today at 95/98, and the company’s $200 million B-2 bank loan was quoted at 95/98, according to Solve Advisors.

Panda Stonewall and Ares Management did not immediately respond to requests for comment.

--Ellen Schneider, James Holloway
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