Financing secure for gas-fired power plant in Texas

Panda Power Funds on Sept. 18 said its affiliate Panda Sherman Power LLC has completed the financing on its planned 758 MW natural gas-fueled, combined-cycle power plant in Sherman, Texas. The company will start construction immediately on the 204-acre site and expects commercial operations to begin by the end of 2014.

Goldman Sachs and Credit Suisse arranged the senior debt financing for the plant. Panda Power said the transaction marks only the second time in six years that a capital-intensive, greenfield construction project has been financed with a term loan. The other financing was for Panda’s 758 MW Temple, Texas generating station, which occurred in July of this year.

Panda Power Funds selected a turn-key consortium of Bechtel and Siemens Energy Inc. (NYSE: SI) to build the generation facility. Siemens will provide the power island package including the natural gas turbines, steam turbine, waste heat recovery boilers, and instrument and control systems. Bechtel will be responsible for the engineering and procurement for the balance of the plant, and the installation, construction and commissioning of the facility.

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