Central Termica Loma de La Lata

active

Loma de la Lata was built in 1994 by Central Puerto SA as an expansion of a larger project (see project 68 Central Puerto SA). Central Puerto SA was formed from a full divestiture of Puerto Nuevo and Nuevo Puerto, two generating units owned by Servicios Electricos del Gran Buenos Aires (Segba), an Argentinean state-owned utility. Loma de la Lata had three open cycle gas turbines and an installed capacity of 369MW. The plant was strategically located near the Loma de la Lata gas field. In May 2007, Pampa Energia SA acquired 100% of the shares of Loma de La Lata and renamed the project company Central Termica Loma de La Lata SA. Pampa Energia SA [Argentina] was a subsidiary of Grupo Dolphin and related companies. In 2008, Pampa Energia SA financed an expansion of Loma de la Lata’s installed capacity by 178 MW through the conversion of the plant to a combined cycle facility. The project was to increase Loma de la Lata’s capacity by approximately 50% without additional gas consumption, resulting in increased efficiency for the whole plant. Loma de la Lata’s combined cycle was to operate at an efficiency of approximately 50% for 547 MW. The expansion reached financial closure on June 24, 2008 and comprised US $346.2 million debt and US $36.8 million equity. Debt was split between a US $88.2 million letter of credit facility, which accrued fees between 2% and 2.5%, an up to US $80 million, 5-year bridge facility with fees at LIBOR plus a margin between 4.75% and 5.50%, and a US $178 million bond issue. ABN Amro and Standard Bank were the joint mandated lead arrangers. The financing agreement contained guarantees such as an irrevocable unconditional guarantee by Pampa Energia, a first priority pledge on the shares of Central Termica, and the fiduciary assignment of certain rights of Central Termica.