Printer Friendly

PROPOSED COSO PROJECT DEBT REFINANCING RECEIVES INVESTMENT GRADE RATINGS FROM MOODY'S, STANDARD & POOR'S AND DUFF & PHELPS

PROPOSED COSO PROJECT DEBT REFINANCING RECEIVES INVESTMENT GRADE RATINGS
 FROM MOODY'S, STANDARD & POOR'S AND DUFF & PHELPS
 OMAHA, Neb., Oct. 29 /PRNewswire/ -- California Energy Company, Inc. (AMEX: CE) announced today a proposed refinancing of the debt of the Navy I, BLM and Navy II Partnerships which collectively comprise the Coso geothermal project. California Energy operates and, through subsidiaries, is the managing partner (and approximately 50% owner) of the three Coso Partnerships, which in 1991 provided approximately 90% of California Energy's revenues. Secured notes ("Notes") to be issued by a special purpose corporation on behalf of the Partnerships in the proposed refinancing have been rated "Baa3" by Moody's Investors Service, Inc., "BBB-"by Standard & Poor's and "BBB" by Duff & Phelps.
 California Energy's President and Chief Operating Officer, Richard Jaros stated, "We are pleased that the three major credit rating agencies have rated the non-recourse project debt on our major asset investment grade. The proposed refinancing provides an excellent opportunity to obtain favorable long-term fixed interest rates."
 If the proposed private placement is consummated, the Note proceeds of approximately $554 million will be used by the Coso Partnerships to retire all existing project finance bank debt, fund separate debt service reserve funds and contingency funds for each Partnership, and finance a portion of the capital expenditures related to the Partnerships' facilities. The proposed refinancing structure contemplates the establishment of contingency funds for each Partnership (in an aggregate amount of $68 million). The amount of the proposed contingency fund for each Partnership will represent the approximate maximum amount, if any, which could theoretically be payable by such Partnership to third parties to satisfy and discharge all liens of record and other contract claims encumbering such Partnership's Plant at the time of the sale of the Notes, including liens and contract claims which are the subject of litigation between each Partnership and Mission Power Engineering Company ("MPE") and to establish a reserve for any other contingencies that such Partnership determines may arise in the future. The contingency funds in the proposed refinancing structure have been established in order to obtain ratings to facilitate the offer and the sale of the Notes, and the proposed establishment of such funds does not reflect the Partnerships' views as to the merits or likely disposition of such litigation or other contingencies. The Coso Partnerships believe that MPE's claims are substantially without merit and are vigorously contesting such claims, as well as the validity of the liens. To the extent that such litigation or other contingencies are resolved, funds deposited in each Partnership's contingency fund would be withdrawn by such Partnership for other purposes including funding debt service reserves and future operating or capital expenditures.
 The Notes will be offered in a private offering transaction to qualified institutional buyers under Rule 144A and a closing is expected in mid-November. The Notes are not obligations of California Energy and this press release shall in no way constitute an offer to sell or the solicitation of an offer to buy the Notes.
 California Energy Company develops environmentally responsible power generating facilities. The Company operates five facilities currently producing in excess of 250 megawatts.
 -0- 10/29/92
 /CONTACT: Richard Jaros, president and COO, 402-330-8900, or John Sylvia, chief financial officer, 402-330-8900, both of California Energy/
 (CE) CO: California Energy Company, Inc. ST: Nebraska IN: OIL SU:


KH -- MN008 -- 6584 10/29/92 12:32 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 29, 1992
Words:563
Previous Article:THE LVI GROUP REPORTS RESULTS FOR THIRD QUARTER 1992
Next Article:VARCO INTERNATIONAL INC. ANNOUNCES RESULTS
Topics:


Related Articles
MOODY'S ASSIGNS RATINGS TO INTERNATIONAL LEASE FINANCE CORP. COMMERCIAL PAPER AND NEW PREFERRED STOCK ISSUE
CLOSING OF $560 MILLION INVESTMENT GRADE RATED COSO PROJECT DEBT REFINANCING
DUFF & PHELPS: CALIFORNIA ENERGY COMPANY CONVERTIBLE SUBORDINATED DEBENTURES RATED 'BB-'
American Annuity Group Receives Ratings Upgrades From Moody's
American Financial Group Subsidiary Debt Ratings Upgraded By Moody's
Realty Income Receives Investment Grade Ratings
DCR Assigns New Ratings to CalEnergy Company, Inc.
Cabot Industrial Trust Files $1 Billion Universal Shelf.
Moody's Upgrades El Paso Electric Ratings to Baa3.
Green Mountain Power Announces Rating Agency Developments.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters