International Power repays $769m of debt on US plants
INTERNATIONAL POWER, an electricity generating company, said yesterday it will temporarily repay $769m (£469m) of debt it owes across fiveUS power plants, taking advantage of its “strong” cash position and low refinancing rates in the energy market.
The London-listed firm, which owns energy plants across the world said: “International Power intends to re-finance these assets in the future. These assets currently have a low level of gearing and there are a number of financing options available, which will be reviewed in the light of conditions in the US power and debt markets.”
The company added that after the move the firm will still have strong cash flows. The five plants are based in Texas and New England and have a total capacity of 3,523 megawatts.
The group said it would sell its Czech business to Czecho-Slovak investment firm J&T Group for £738.3m in July.
Last month in its interim management update, International Power said it expects earnings per share in 2009 to be broadly in line with 2008.