Mirant closes $650MM project financing for Marsh Landing gas-fired power station

Source: Mirant Corporation

Mirant Corporation (NYSE: MIR) announced that its subsidiary, Mirant Marsh Landing, LLC, closed last Friday on a $650 million credit facility to provide construction and permanent financing for its Marsh Landing Generating Station. The credit facility includes $500 million of construction and term debt and $150 million of letter of credit facilities. The letter of credit facilities will satisfy the debt service reserve required by the new credit facility and the performance security requirements under the project's power purchase agreement with Pacific Gas and Electric Company (PG&E). The term debt will be repaid over the ten year term of the power purchase agreement. 

Mirant Marsh Landing, LLC has received all permits necessary to begin construction and has directed Kiewit Power Constructors Co. to commence engineering and procurement for the project. Construction is scheduled to begin later this year and to be completed by mid-2013. The total cost of the station is expected to be approximately $700 million. 

The Marsh Landing Generating Station will be a 760 MW natural gas-fired peaking facility to be located adjacent to Mirant's existing Contra Costa Generating Station near Antioch, California. Marsh Landing will utilize existing gas and electric transmission infrastructures and incorporate best available control technology. 

Mirant is a competitive energy company that produces and sells electricity in the United States. Mirant owns or leases more than 10,000 megawatts of electric generating capacity.

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