TEAM Energy Corporation (TeaM Energy) recently closed a $220 million 12-year mezzanine loan facility arranged by SB Capital Investment Corporation.
Proceeds from the loan facility were used to primarily refinance the company’s existing mezzanine loan facility with PPF Company B.V. (formerly Nomura Philippines Power Funding Company B.V.).
The transaction marked the first time that TeaM Energy has tapped the domestic capital market for funding requirements. Security Bank Corporation and Metropolitan Bank and Trust Company were the major lenders for the transaction.
Security Bank President and CEO Alberto Villarosa said, “the mezzanine lenders welcome the opportunity to support TeaM Energy’s projects to produce reliable and stable energy sources. We are pleased to be a partner in efforts to develop a strong energy sector which is a key driver in our country’s economic growth.”
Toshiro Kume, Executive Vice President and Chief Finance Officer of TeaM Energy, said “the new mezzanine loan facility is TeaM Energy’s maiden fund-raising exercise from the domestic market. Notwithstanding the subordinated nature of the loan, the $220 million mezzanine facility achieved a successful financial close amidst a very tight timetable”.
TeaM Energy is a joint venture partnership between noted Japanese firms, Marubeni Corporation and Tokyo Electric Power Company, Incorporated and, is one of the largest independent power producers in the Philippines, with over 2,000 megawatts (MW) of installed generating capacity.
In June 2007, CrimsonPower Holdings Company, Inc. (later changed to TeaM Energy) signed a mezzanine loan facility agreement with PPF Company B.V. to partially fund the acquisition of 100% ownership in Mirant Asia-Pacific Limited (MAPL), then the largest IPP holding company, from US-based IPP Mirant Corporation.
TeaM Energy’s power generation portfolio consists of a 100% direct interest in the 1,218 MW coal-fired Sual power plant located in Sual, Pangasinan; a 100% direct interest in the 735 MW coal-fired Pagbilao power plant in Pagbilao, Quezon; as well as a 20% indirect interest in the 1,251 MW natural gas-fired Ilijan power plant located in Ilijan, Batangas.
A significant portion of Sual and Pagbilao’s capacity is contracted by the National Power Corporation (NPC). In addition, TeaM Energy also operates an Energy Supply Business group (ESB), wherein it markets and sells the excess capacity of Sual and Pagbilao to various distribution utilities and direct users.
SB Capital is the wholly-owned investment banking arm of Security Bank and is currently one of the most active investment houses in the country. SB Capital provides a wide range of investment banking and financial services which include equity and debt underwriting, loans syndication, private placements, advisory and stock brokering services through wholly-owned stock brokerage subsidiary, SB Equities, Inc.