MSU raises USD250 million and secures financing for 300 MW expansion

News provided by

Dec 03, 2018, 08:50 ET

BUENOS AIRES, Argentina, Dec. 3, 2018 /PRNewswire/ -- MSU Energy, a growing power generator with operations located in Argentina, today announced significant developments to secure the ongoing expansion and conversion to combined cycle of its three power plants, which will increase total installed capacity to 750 MW.

On November 30, 2018, MSU Energy closed a private placement of USD 250 million senior secured notes due 2023. The notes priced at 3-month Libor plus 11.25% and are guaranteed by certain assets related to the expansion and a pledge of shares of the issuers. The proceeds will be used to finance the combined cycle expansion, repay short term debt and for general corporate purposes.

Hernan Walker, MSU Energy's Chief Financial Officer, said: "This private placement is a major milestone for our company. We have fully funded the strategic expansion of our three power plants which we expect will allow us to double EBITDA by 2020. Combined with our USD 600 million debut bond at 6.875% issued in February 2018, our average weighted cost of capital stands at 8.9% with an average maturity slightly below 6-years, significantly reducing our refinancing risk in this volatile market context."

Pablo Ferrero, MSU Energy's Executive Director, added: "The combined cycle construction is well advanced and on schedule. Our EPC contractor, AESA (YPF affiliate) and our equipment supplier, General Electric, are engaged and highly committed to the project. Once the combined cycle is complete, MSU Energy will be a unique power generator in Argentina, with total installed capacity of 750 MW composed of high quality and reliable technology, 100% under combined cycle operation and 100% contracted in attractive long term PPA's in US dollars. We appreciate the ongoing support and confidence from investors, bondholders and all stakeholders."

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or under the securities laws of any state or other jurisdiction of the United States. The notes may not be offered or sold (i) within the United States, except in a transaction that is exempt from, or not subject to, the registration requirements of the U.S. Securities Act or (ii) outside the United States, except pursuant to Regulation S under the U.S. Securities Act, and, in each case, in accordance with any applicable state securities laws.

About MSU Energy

MSU Energy owns and operates three simple-cycle thermal power generation plants with a total installed capacity of 450 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 PPA's which are take-or-pay, US dollar denominated and with a 10-year tenor.

Forward-Looking Statements

Statements in this press release may be "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which are subject to risks and uncertainties. Other than statements of historical fact, information regarding activities, events and developments that we expect or anticipate will or may occur in the future, including, but not limited to, information relating to our future growth and profitability targets and strategies, are forward-looking statements based on management's estimates, assumptions and projections. Forward-looking statements also include, but are not limited to, statements regarding our future economic and financial condition and results of operations, the plans and objectives of management and our assumptions regarding our performance and such plans and objectives. Many forward-looking statements may be identified by the use of words such as "intend," "believe," "expect," "anticipate," "should," "planned," "projected," "estimated" and "potential," among others. Forward-looking statements contained in this press release are predictions only and actual results could differ materially from management's expectations due to a variety of factors. Any forward-looking statements that we make in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. We assume no obligation to update developments of these risk factors or to announce publicly any revisions to any of the forward-looking statements that we make, or to make corrections to reflect future events or developments, except as required by the federal securities laws.

Contact Information
Hernan Cerutti
Financial Planning and Investor Relations
[email protected]
+54 11 43162800
www.msuenergy.com

SOURCE MSU Energy