International Power and Mitsui repay IPM debt

International Power has announced that on 31 January 2011, together with Mitsui, it will repay $395m (£248m) of debt secured on the IPM Joint Venture’s interests in seven assets jointly acquired by the two companies as part of the Edison Mission Energy portfolio acquisition in 2004.

International Power’s 70 per cent share of the repayment is equivalent to $275m and the required injection of capital is estimated to be $220m, after taking into account the cash balance forecast to be held in the borrowing entity on 31 January 2011.

International Power will be repaying the debt in view of its strong corporate liquidity and the comparatively high pricing of the subordinated debt.

This repayment was planned as part of the wider re-financing programme associated with the proposed combination with GDF Suez Energy International and is therefore part of delivering the previously announced financial synergies from the transaction.