PF Archive

Boston Gen: Hedges go merchant

01 11 2005

On 23 October, Boston Generating was the subject of a recapitalisation through its new owner EBG Holdings. Boston Generating consists of the Sithe Boston generating, which was the subject of a $1.25 billion financing in December 2000, led by Credit Suisse First Boston and BNP Paribas. Despite being located near Boston, which is experiencing strong power demand, and being highly efficient, the plants have a chequered history. The three assets – Mystic 8&9, a 1600MW gas-fired plant, Fore River, 800MW of dual-fired capacity and Mystic Station, a 1005MW oil- and gas-fired plant – were to be constructed by Raytheon, and their EPC contracts were transferred to Washington Group, which was unable to perform them because of a liquidity crisis. This delayed the construction financing until the appointment of SNC Lavalin as a replacement contractor. The financing ultimately closed in July 2001, and on November 2002, Sithe sold the portfolio to Exelon for $534 million, with Exelon guaranteeing to contribute the remaining equity to the projects. Sithe broke cleanly with...