Houlihan Lokey Advises New Frontera Holdings

Houlihan Lokey is pleased to announce the successful refinancing of New Frontera Holdings, LLC (Frontera), the owner of a 540 MW natural-gas-fired power plant located in South Texas (the Facility). The transaction closed on July 1, 2025.

Frontera operates a 540 MW natural-gas-fired combined cycle facility located in Mission, Texas, near the southern border. The Facility sold power into Mexico from October 2016 until June 2023, at which point it reconnected to the ERCOT market. Today, the Facility sells 100% of its output into ERCOT South Zone on a merchant basis.

Houlihan Lokey launched the refinancing process in early 2025 and ultimately selected a leading infrastructure lender as the financing party. The transaction refinanced the company’s existing first lien term loan and bridge loan facilities, including all accrued and unpaid interest, and established a regular-way capital structure. The pro forma capital structure includes a new first lien term loan and an existing second lien term loan.

Houlihan Lokey served as the exclusive placement agent for the company. This transaction highlights Houlihan Lokey’s continued success advising the largest participants in the power industry.

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