Santander Kicks off Leveraged Loan for Pathfinder Power LBO (1)

Banks led by Banco Santander kicked off a US leveraged loan on Monday to help finance the $5 billion buyout of a portfolio of electric-generation assets from Constellation Energy Corp.

Pathfinder Power LLC is looking to raise $2.5 billion from a term loan B to fund its LBO by LS Power. The seven-year offering is being pitched at an interest rate of 2-2.25 percentage points over the US benchmark and a price of 99.5 cents on the dollar, according to a person with direct knowledge of the matter. Lender commitments are due on June 24.

The portfolio comprises 4.4 ...