Cricket Valley Energy Center

Houlihan Lokey is pleased to announce the successful recapitalization and restructuring of Cricket Valley Energy Center, LLC (Cricket Valley). Houlihan Lokey served as the exclusive financial advisor to Kiwoom Asset Management Co. (Kiwoom), holder of Cricket Valley’s mezzanine debt, in an out-of-court transaction through which the entirety of the first lien debt was refinanced, and Kiwoom’s mezzanine debt will equitize into a majority equity interest in the company. The refinancing closed on June 26, 2025.

Cricket Valley owns the Cricket Valley Energy Center, a 1,016 MW combined cycle power generation facility located in Dover, New York (the “Facility”). Reaching commercial operations in April 2020, the Facility is among the largest and most efficient combined cycle facilities in NYISO.

Since commencing operations, the Facility has underperformed versus expectations due to lower-than-projected power and capacity pricing and underutilization, driven in large part by constrained natural gas supply. Natural gas supply to the Facility was significantly impacted by the cancellation of the proposed Constitution Pipeline project in 2020, which resulted in higher-than-expected realized natural gas pricing.

Facing a first lien term loan maturity on June 30, 2025, Houlihan Lokey and the company’s advisors launched a refinancing process in late 2024 to facilitate a refinancing of the existing first lien term loan. The transaction refinanced the company’s first lien term loan and letter of credit facilities, including all accrued and unpaid interest, and will result in the equitization of Kiwoom’s mezzanine debt into a majority equity interest in the company upon receipt of certain regulatory approvals. The pro forma capital structure includes $375 million of first lien debt and $350 million of second lien debt.

Houlihan Lokey assisted in structuring, negotiating, and other financial aspects of the transaction on Kiwoom’s behalf. This transaction highlights Houlihan Lokey’s continued success advising the largest participants in the power industry.

If you have any questions regarding this transaction, please contact Xander Hector, Spencer Anderson, Thad Williams, or Ben Schroeder.

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