Bank of America and Paribas lead $ 730 mm project financing for Orion Power

BAS, a subsidiary of Bank of America Corporation, and Paribas Corporation, a subsidiary of Paribas, have announced that they are Lead Arrangers on $ 730 mm of non-recourse credit facilities for Orion Power Holdings of Baltimore, MD.
The financing, which was consummated on July 30, 1999, will help Orion Power acquire 2,615 MW in power-generating assets from two New York-based utility companies. Orion Power Holdings was formed in March 1998 by Constellation Energy Group and Goldman Sachs investment funds to purchase power-generating assets in the U.S. that are being divested by utilities. Orion needed to finance its initial purchase with a flexible facility that would allow it to acquire additional assets in the future and optimise its capital structure.

Banc of America Securities' and Paribas' track record and knowledge of the power industry, particularly in the context of ongoing deregulation, enabled them to win the Orion transaction. According to Gerald Stalun, managing director and co-head of the BAS Project Finance Global Power Group, "Syndicating $ 730 mm for a start-up company in a deregulating industry was a significant challenge. But we developed an aggressive sales plan to introduce investors to the company, and they responded by subscribing the transaction twice over."
For Don Maley, managing director and head of Paribas' Project Finance Group in New York, the goal was "to design a structure that would appeal to a large number of banks and at the same time position Orion for subsequent access to capital markets. The short-term nature of the financing with a flexible amortisation profile allowed us to achieve both objectives and assure a successful debut placement."

Banc of America Securities is a full-service investment banking and brokerage firm headquartered in San Francisco. It employs more than 4,000 associates in offices around the country and, through affiliates, offers capabilities world-wide. Bank of America, with $ 614 bn in assets, is the largest bank in the United States, with full-service consumer and commercial operations in 21 states and the District of Columbia.
Bank of America provides financial products and services to 30 mm households and 2 mm businesses, as well as international corporate financial services for transactions in 190 countries.

Paribas is an international bank organised around four core business lines (Investment Banking, Asset Management, Retail Financial Services and Proprietary Investments), and is focused on developing strategic growth markets through partnerships and international expansion. Established in 60 countries, Paribas employs 20,600 people world-wide.
Paribas' Project Finance Group has developed a strong track record with the U.S. independent power industry. Over the past 15 years, Paribas has arranged, managed or participated in over $ 32 bn of financing for more than 75 projects in the Americas, focusing on energy related transactions such as power plants, pipelines, oil & gas field development, refineries and petro-chemical projects.
In the U.S., Paribas conducts certain capital markets activity through Paribas Corporation, a U.S. registered broker/dealer and member of SIPC.