THE WOODLANDS, Texas, Sept. 12, 2018 /PRNewswire/ -- New MACH Gen, LLC ("NMG" or the "Company") today announced that NMG and certain of its subsidiaries have successfully completed their comprehensive restructuring with their first lien lender and equity owner.
The restructuring was consistent with the Restructuring Support Agreement executed among the parties in June 2018 ("RSA") and a plan of reorganization confirmed by the bankruptcy court in July 2018 ("Plan").
"We are pleased to have executed the restructuring in less than 90 days since the filing of our Plan of Reorganization. The closing of the transactions results in meaningful improvement to the Company's capital structure, including significant deleveraging, improved liquidity, and a longer operating runway," said John Chesser, Chief Financial Officer of NMG. "CEO Dale Lebsack and I appreciate the commitment our first lien lender and equity owner have shown the Company."
Consistent with the RSA and the Plan, the restructuring has resulted in: (1) NMG's sale of the Harquahala, Arizona power generation facility, (2) a reduction of its first lien obligations by approximately $125 million under its refinanced first lien credit facility, (3) the first lien credit facility being refinanced to modify its economic terms and extend its maturity to 2023, and (4) NMG's equity owner providing additional new financing to NMG in the amount of $25 million.
The Company engaged Evercore as its financial advisor, Alvarez & Marsal North America, LLC as its restructuring advisor, and Young Conaway Stargatt & Taylor, LLP as its legal advisor.
Following the restructuring, NMG owns and manages a portfolio of two natural gas-fired electric generating facilities: (1) a 1,080 MW facility located in Athens, New York, that achieved commercial operation on May 5, 2004 and (2) a 360 MW facility, located in Charlton, Massachusetts, that achieved commercial operation on April 12, 2001. The Athens facility dispatches power into the region managed by the New York independent system operator ("ISO") and the Millennium facility dispatches power into the region managed by ISO New England.
SOURCE New MACH Gen, LLC
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