Partner Sarah Fitts was quoted on considerations that private equity fund owners may make when deciding to refinance in power projects.
Sponsors and lenders that financed gas-fired power projects with commercial bank loans in 2011 are now exploring refinancing with term loan Bs and other considerations due to a borrower-friendly market and low power prices.
The type of owner may impact how a deal is refinanced. Sarah said that private equity fund owners would be expected to return capital to shareholders, which is a factor that will play into their refinancing decisions.
“Motivations will differ depending on where in the life cycle that fund is,” Sarah added.
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