GE aids upgrades at Saguaro's 105 MW gas-fired power plant in Nevada

Source:GE

GE connects capital and equipment for Saguaro Power Company’s 105 MW gas-fired co-generation plant in Nevada.

GE Energy Financial Services - through GE Capital Markets, Inc. – has served as the lead arranger in a $97.4 million senior secured credit facility for Saguaro Power Company’s gas-fired 105-megawatt combined cycle cogeneration project in Nevada.

Affiliates of NRG Energy (NRG) and a partnership between MSD Capital, L.P. and Paragon Energy Holdings each maintain 50 percent ownership in the plant, located in Henderson. In addition to GE Energy Financial Services, CIT Corporate Finance, Energy participated in the credit facility as a lender and Documentation Agent. Additional financial details of the transaction were not disclosed.

A key advantage of the plant is its close proximity, 16 miles, from a major power load pocket, the world-famous Las Vegas Strip. Saguaro’s location minimizes transmission costs and constraints while supporting the growth of Las Vegas and surrounding areas. The plant has been in commercial operation since 1991.

The financing provides liquidity for working capital and general corporate purposes. Saguaro Power Company chose GE Energy Financial Services for its proven execution success, in-depth knowledge of inherent risks to qualifying cogeneration facilities, and its ability to lead and structure complex financing transactions. In addition to this financing, GE previously provided Saguaro with two robust, durable Frame 6B gas turbines, offering proven reliability, and one GE SAXC Steam Turbine, which provides high reliability and sustained high efficiency.

“This cogeneration project illustrates GE’s unique ability to provide both energy capital and technology,” said Carl Peterson, a managing director and Debt Origination leader at GE Energy Financial Services. “Our growth in power plant debt has also recently included loans for the 700-megawatt CPV Woodbridge Energy Center and 584-megawatt Nelson Energy Center.”

Commenting on behalf of the sponsors of the Saguaro Power Company, Brian Redmond, a managing director at Paragon Energy Holdings, stated, “The additional financing will provide us with the financial flexibility to continue operating a gas-fired co-generation plant that is integral to the operations of our steam customers and delivers electricity at a key location in NV Energy’s power grid.”

Mike Lorusso, Group Head of CIT Corporate Finance, Energy, added, “CIT is committed to financing cleaner and more efficient power generation projects and is pleased to serve as Documentation Agent for this transaction.”

Cogeneration, the simultaneous production of electricity and heat using a single fuel source such as natural gas, harnesses heat that would otherwise be wasted. This can result in higher thermal efficiency; also, carbon dioxide emissions can be substantially reduced. The Saguaro Power Company’s plant uses heat recovery steam generators to economically produce process-critical steam to adjacent chemical manufacturing and food processing plants.

The plant maintains a power purchase agreement to supply Nevada Power Co., a subsidiary of NV Energy Inc., with 90 megawatts of energy through April 2022. Separate contracts that also run through April 2022 are in place for the steam generated at the plant.

GE Energy Financial Services holds equity and debt investments in power projects with a combined capacity of 30 gigawatts, equivalent to the installed generating capacity of Norway. The GE unit offers flexible financial structures ranging from common and preferred equity to debt and acquisition finance.

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