GE Energy Financial Services arranged a $97.4 million senior secured credit facility for Saguaro Power Co.’s 105 MW combined cycle cogeneration project in Nevada. Financial details of the transaction were not disclosed.
Affiliates of NRG Energy and a partnership between MSD Capital, L.P. and Paragon Energy Holdings each maintain 50 percent ownership in the power plant, located in Henderson, Nevada.
In addition to GE Energy Financial Services, CIT Corporate Finance, Energy participated in the credit facility as a lender and documentation agent.
An advantage of the plant is its close proximity, 16 miles, from a major power load pocket, the Las Vegas Strip. Saguaro’s location minimizes transmission costs and constraints while supporting the growth of Las Vegas and surrounding areas. The plant has been in commercial operation since 1991.
Cogeneration, the simultaneous production of electricity and heat using a single fuel source such as natural gas, harnesses heat that would otherwise be wasted. This can result in higher thermal efficiency; also, carbon dioxide emissions can be reduced. The Saguaro Power Co.’s plant uses heat recovery steam generators to economically produce process-critical steam to adjacent chemical manufacturing and food processing plants.
The plant maintains a power purchase agreement to supply Nevada Power Co., a subsidiary of NV Energy Inc., with 90 MW of energy through April 2022. Separate contracts that also run through April 2022 are in place for the steam generated at the plant.
GE Energy Financial Services holds equity and debt investments in power projects with a combined capacity of 30 GW, equivalent to the installed generating capacity of Norway. The GE unit offers flexible financial structures ranging from common and preferred equity to debt and acquisition finance.