SB Capital arranges Team Energy’s $220M loan facility

Team Energy Corp. (Team Energy) recently closed a $220-million 12-year mezzanine loan facility arranged by SB Capital Investment Corp.

Proceeds from the loan were used to primarily refinance the company’s existing loan facility with PPF Co. B.V. (formerly Nomura Philippines Power Funding Co. B.V.).

The transaction marked the first time that Team Energy has tapped the local capital market for its funding requirements. Security Bank Corp. and Metropolitan Bank and Trust Co. were the major lenders for the transaction.

Security Bank president and CEO Alberto Villarosa said: “The mezzanine lenders welcome the opportunity to support Team Energy’s projects to produce reliable and stable energy sources. We are pleased to be a partner in efforts to develop a strong energy sector, which is a key driver in our country’s economic growth.”

Toshiro Kume, executive vice president and chief finance officer of Team Energy, said the new mezzanine loan facility was Team Energy’s maiden fund-raising exercise from the domestic market. “Notwithstanding the subordinated nature of the loan, the $220 million mezzanine facility achieved a successful financial close amid a very tight timetable,” he said.

Team Energy is a joint venture between Japanese firms Marubeni Corp. and Tokyo Electric Power Co. Inc. and is one of the biggest independent power producers in the Philippines with more than 2,000 megawatts of installed generating capacity.

In June 2007, Crimson Power Holdings Co. Inc. (later changed to Team Energy) signed a mezzanine loan facility agreement with PPF Co. B.V. to partially fund the acquisition of 100-percent ownership in Mirant Asia-Pacific Ltd., then the largest IPP holding company, from US-based IPP Mirant Corp.