Panda Power wraps up plant financing

The Dallas-based fund manager has announced the completed financing of a new, 758MW natural gas power plant in Sherman, Texas. Panda Power is investing equity alongside institutional co-investors, while Goldman Sachs and Credit Suisse have arranged debt finance.

Panda Power Funds affiliate Panda Sherman Power has completed financing for a planned 758-megawatt (MW) natural gas-fuelled combined-cycle power plant in Sherman, Texas.

Panda Power said in a statement, which did not provide numerical amounts, that it was supplying equity for the project alongside “several other institutional co-investors”. Goldman Sachs and Credit Suisse have arranged senior debt financing, while Bechtel and Siemens Energy Sector will build the plant.

The statement said that construction would begin immediately on the 204-acre site and that commercial operations are expected to begin by the end of 2014. It added that this was only the second time in six years that a capital intensive greenfield construction project had been financed with a term loan – the other being Panda’s Temple, Texas generating station (also 758MW) in July this year.

“The financing market that was tough as nails two months ago is starting to show signs of movement in our direction,” said Todd Carter, president and senior partner of Panda Power Funds, in the statement. “While it was still a long, hard march to closing, calls were coming in to us from many different quarters to be a part of this project.”

Based in Dallas, Texas, Panda Power Funds sources and develops, acquires, invests in and operates large-scale natural gas-fuelled power generation facilities. The firm closed its maiden fund on $420 million in November last year.