Talk:Plum Point Energy Station
Some info on the relationship of Dynergy (owner of Baldwin) with PPES and PPEA
FYI --Bob Burton 22:47, 18 December 2007 (EST)
DYNEGY INC. and DYNEGY HOLDINGS INC. http://investor.shareholder.com/dynegy/secfiling.cfm?filingID=1362310-07-2843 Form 10-Q Quarterly Report For the quarterly period ended September 30, 2007 Filed Nov 9, 2007 page 24
PPEA Holding Company LLC. On April 2, 2007, in connection with the completion of the Merger Agreement, we acquired a 70% interest in PPEA Holding Company LLC (“PPEA”). PPEA owns and operates Plum Point Energy Associates, LLC (“Plum Point”). Plum Point is constructing a 665 MW coal fired power generation facility (the “Project”), located in Mississippi County, Arkansas, in which it owns an approximate 57% undivided interest. Plum Point is the Borrower under a $700 million term loan facility, a $17 million revolving credit facility, and a $102 million letter of credit facility securing $100 million of Tax Exempt Bonds (as discussed below in Note 8). The Project indebtedness is an obligation of Plum Point. The payment obligations of Plum Point in respect of the Bank Loan, the Revolver, and the LC Facility are unconditionally and irrevocably guaranteed by Ambac Assurance Corporation, an independent third party insurance company. Plum Point is party to credit facilities and an insurance policy, which are secured by a security interest in all of Plum Point’s assets, contract rights and Plum Point’s undivided tenancy in common interest in the Project and PPEA’s interest in Plum Point. These assets consist primarily of $236 million of plant construction in progress at September 30, 2007. There are no guarantees of the indebtedness by any parties, and Plum Point’s creditors have no recourse against our general credit. However, as of September 30, 2007, we have posted a $30 million letter of credit to ensure our equity contribution to the Project. See Note 8—Debt—Plum Point Credit Agreement Facility for discussion of Plum Point’s borrowings. PPEA meets the definition of a VIE, and we have determined we are the primary beneficiary of this entity. As such, we have consolidated it in accordance with the provisions of FIN No. 46(R). On October 25, 2007, we entered into an agreement to sell a non-controlling ownership interest in PPEA to certain affiliates of John Hancock Life Insurance Company (“Hancock”) for approximately $82 million, which is net of non-recourse project debt. The non-controlling interest to be purchased by Hancock represents approximately 125 MW of generating capacity in the Plum Point power generation facility. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter 2007. Upon closing, we will own a 37% interest in PPEA, representing an equivalent of approximately 140 MW and will maintain construction and commercial control of the facility.