Plum Point Power Station – Osceola, AR
This new coal-fired 665mw power plant in Osceola, Arkansas was built using private bank loans and equity on a project finance basis. The financial structure included bank loans that were credit enhanced with a financial guarantee provided by Ambac at financial close in 2006 and interest rate swaps provided by 3rd party lenders. Following the financial crisis, Ambac’s downgrade threatened the viability of this complex transaction.
While with DEPFA Bank, Victoria Taylor assisted her team in considering restructuring alternatives to relieve the otherwise well-performing project from the poorly-rated financial guarantee. Victoria assisting in leading the strategy developed that allowed the lenders to successfully return the financial insurance policy in exchange for a number of commercial and practical benefits to the project credit.
Team Members: Victoria Taylor
Role: financial advisor
contract duration: 2006
Transaction Size: $600 million