MSU Energy Announces Full Repayment of its $250 Million Senior Secured 2024 Floating Rate Notes

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Mar 13, 2024, 19:19 ET

BUENOS AIRES, Argentina, March 13, 2024 /PRNewswire/ -- MSU Energy S.A., a power generator with operations in Argentina, announced in its 4Q23 Earnings Conference Call, that on February 28, 2024, the Company successfully completed the final $25.0 million principal payment on its Senior Secured 2024 Floating Rate Notes, for an aggregate principal amount of $250 million.

The Notes were originally disbursed in November 2018 to finance the expansion and conversion to combined cycle of the Company's three power plants, adding 300MW of incremental capacity and reaching a total installed capacity of 750MW. The combined cycle project represented a total investment of approximately $500 million. The Company achieved Commercial Operation of the combined cycles in the third and fourth quarters of 2020, without any cost overruns or accrued penalties with Cammesa. The combined cycle completion has allowed MSU Energy to increase energy conversion efficiency of its plants by 25% and increase EBITDA by approximately 85%.

Since project completion, MSU Energy's main focus has been the full amortization of the project's financing which included a vendor finance facility with General Electric and these Notes. Following this repayment, MSU Energy's weighted cost of capital stands at 7.1%.

Pablo Ferrero, Executive Director of MSU Energy stated: "This is a significant milestone for the company. We are proud to have been able to build the three Combined Cycles, stabilize operations, and fully amortize these Notes, amidst a very challenging environment, which included Covid pandemic, import limitations, FX restrictions and macro volatility."

In turn, Hernan Walker, Chief Financial Officer, stated: "Since achieving COD of the combined cycles during the second semester of 2020, we have successfully repaid approximately $125 million dollars of GE Vendor Financing and $250 million dollars of this bond. These repayments allow us to release a significant amount of guarantees which include liens over combined-cycle gas and steam turbines, assignments over the combined-cycle PPAs and a pledge of shares of the Company." He also added: "We remain fully committed to continue our deleveraging cycle throughout 2024, improving our leverage ratios which will allow us to release the remaining collateral over the 2025 Notes and strengthening our balance sheet."

About MSU Energy

MSU Energy owns and operates three combined-cycle thermal power generation plants with a total installed capacity of 750 MW, located in Argentina. Each power plant is equipped with highly reliable and tested GE technology. The company´s capacity is fully contracted under Resolution 21/2016 and Resolution 287/2017 PPA's which are take-or-pay, US dollar denominated and with a 10-year and 15-year tenor, respectively.

Learn more at www.msuenergy.com

SOURCE MSU Energy