Axium Infrastructure completes acquisition and financing of the Brooklyn Navy Yard Cogeneration Partners (BNYCP)

Axium Infrastructure has completed the acquisition, and financing of the acquisition, of Brooklyn Navy Yard Cogeneration Partners, L.P., which owns the Brooklyn Navy Yard cogeneration facility, a 286 MW dual fuel power plant, located in Brooklyn, New York that provides steam and electricity to New York City.

Winston & Strawn has represented Axium and Brooklyn Navy Yard Cogeneration Partners, L.P. (BNYCP) in connection with the issuance of US$322,512,400 of senior secured notes privately placed with institutional investors, a US$30 million letter of credit facility provided by Santander Bank, N.A., and a US$82,125,000 subordinated loan from Build NYC Resource Corporation (Build NYC) made from the proceeds of tax-exempt refunding revenue bonds issued by Build NYC and initial purchased by Barclays Capital, Inc. 

The proceeds from the financing were used to redeem approximately $31 million of senior secured bonds issued by BNYCP in 1997 and 2004, defease US$307 million of tax-exempt industrial revenue bonds issued by the New York City Industrial Development Agency in 1997, prepay $60 million of senior secured notes issued by Axium BNY Cogeneration Partners, LLC, and pay transaction costs and certain other expenses in connection with the transaction.