Panda Energy and Teco complete $ 2.2 bn financing for power plants

Panda Energy International and Teco Power Services said they have completed the syndication of their five-year, $ 2.2 bn bank financing to cover construction costs for two separate power plants totalling 4,400 MW. The plants include the 2,200-MW Union Power Station in El Dorado, Arkansas, and a 2,200-MW facility in Gila Bend, Arizona, the companies said.
The first 550 MW of the Union facility, which is already in construction, is expected to begin commercial operation in August 2002. The rest of the facility is scheduled to begin operating in 550-MW phases scheduled for October 2002 and March 2003, with full commercial operation expected in May 2003, the company said.
Construction at Gila River is expected to begin in August and full commercial operation is scheduled for August 2003. The plant will also come online in 550-MW intervals scheduled for February, April and June 2003.
Panda and Teco announced in June they had lined up the syndication deal. They said 40 banks participated in the general syndication, which was oversubscribed by $ 1.2 bn, or 56 %. Citigroup and Societe Generale were the lead arrangers for the financing.

Dallas-based Panda Energy is a privately held, non-regulated electric generation company.

Teco Power is a wholly-owned subsidiary of Teco Energy, an energy-holding company based in Tampa, Florida.