Mirant Corporation, a US based energy company, has closed on a $650m credit facility to provide construction and permanent financing for its Marsh Landing gas-fired power station.
The 760MW power facility will be located adjacent to the company’s existing Contra Costa generating station near Antioch, California.
The credit facility includes $500m of construction and term debt and $150m of letter of credit facilities.
The letter of credit facilities will satisfy the debt service reserve required by the new credit facility and the performance security requirements under the project’s power purchase agreement with Pacific Gas and Electric.
The term debt will be repaid over the ten-year term of the power purchase agreement.
Mirant has received all permits necessary to begin construction and has directed Kiewit Power Constructors to commence engineering and procurement for the project.
Construction is scheduled to be completed by mid-2013 and total cost of the power station is expected to be approximately $700m.