On 23 October, Boston Generating was the subject of a recapitalisation through its new owner EBG Holdings. Boston Generating consists of the Sithe Boston generating, which was the subject of a $1.25 billion financing in December 2000, led by Credit Suisse First Boston and BNP Paribas.
Despite being located near Boston, which is experiencing strong power demand, and being highly efficient, the plants have a chequered history. The three assets – Mystic 8&9, a 1600MW gas-fired plant, Fore River, 800MW of dual-fired capacity and Mystic Station, a 1005MW oil- and gas-fired plant – were to be constructed by Raytheon, and their EPC contracts were transferred to Washington Group, which was unable to perform them because of a liquidity crisis.
This delayed the construction financing until the appointment of SNC Lavalin as a replacement contractor. The financing ultimately closed in July 2001, and on November 2002, Sithe sold the portfolio to Exelon for $534 million, with Exelon guaranteeing to contribute the remaining equity to the projects.
Sithe broke cleanly with...
Thank you for printing this article from IJGlobal.
As the leading online publication serving the infrastructure investment market, IJGlobal is read daily by decision-makers within investment banks, international law firms, advisory firms, institutional investors and governments.
If you have been given this article by a subscriber, you can contact us through www.ijglobal.com/signup, or call our London office on +44 (0)20 7779 8870 to discuss our subscription options.
Thank you for your interest in using My IJGlobal.
As your firm uses IP recognition, you will need to sign in with your own unique login and password. If you do not have your own login details, please click here to register.
Alternatively, contact the IJGlobal Helpdesk on +44 (0)20 7779 8870 or email Helpdesk on firstname.lastname@example.org.