OPC Energy Refinances US Debt with $825 Million Deal
Translated & summarized from Bizportal by baba
OPC Energy has secured an $825 million financing deal for two US power plants, aimed at refinancing existing debt and releasing $130 million for its US subsidiary, CPV. The agreement includes a new seven-year loan with a reduced interest rate margin and aims to improve the company's financial structure. This move comes after OPC Energy expanded its US holdings and saw improved financial results from its American operations.
The story in 6 lines · by baba
- OPC Energy secured an $825 million financing deal for two US power plants.
- The deal will allow for the repayment of existing loans and extend debt maturity.
- Approximately $130 million is slated for transfer to OPC's US subsidiary, CPV.
- The new financing features a reduced interest rate margin compared to previous loans.
- The agreement consolidates financing for the Shore and Maryland power plants.
- OPC Energy has recently increased its ownership of these US assets.
OPC Energy, controlled by Idan Ofer and managed by Giora Almogi, is reorganizing its US financing structure. The company announced a new $825 million financing agreement for two natural gas power plants in New Jersey and Maryland. This deal aims to repay existing loans, extend debt maturity, and transfer approximately $130 million to its US arm, CPV.
The agreement, finalized through subsidiary CPV Generation Holdings, consolidates financing for the Shore and Maryland power plants, which have a combined capacity of 1,470 megawatts. OPC Energy recently increased its stake in these plants to full ownership at the group level, holding about 71% of CPV, alongside Israeli institutional investors.
The new financing package includes a $625 million long-term loan, a $125 million letter of credit facility, and a $75 million revolving credit line. Notably, the interest rate margin on the new long-term loan is 2.5% over the US SOFR rate, a reduction from the previous 3.25% margin. The loan has a seven-year term, with final repayment expected in 2033, and includes provisions for early repayment based on the plants' excess cash flow and leverage ratios.
Beyond improving financing terms, the deal allows OPC Energy to extract liquidity from its operational assets. The planned $130 million distribution is intended for CPV, not directly for OPC Energy's shareholders on the Tel Aviv Stock Exchange. The financing is non-recourse to CPV, meaning lenders rely on the power plants' assets and cash flows as collateral.
This refinancing follows a year of expansion for OPC Energy in the US, including full ownership of the Shore plant and increased stake in the Maryland plant. The company's US operations have shown improved performance, with EBITDA rising 29% to $170 million in the first half of the year. OPC Energy is also developing new projects in Texas and other US states, as well as in Israel.
Mentioned
The same event, reported separately by each outlet. Open a few to compare what different newsrooms emphasize — and what they leave out.
Other 2
