Moody’s rates Essential Power revolver B1

Moody's Investors Service said it affirmed the B1 rating on Essential Power LLC's $565 million senior secured term loan ($531 million currently outstanding) due in 2019, and assigned a B1 rating to Essential's new $75 million revolving credit facility, which replaces the existing $100 million revolving credit facility that matures in 2017.

The new revolving credit facility matures in August 2018, but the amount drops to $67.5 million after August 2017, when one of the lenders, who did not agree to the extension, drops out.

The outlook was revised to stable from negative.

Moody’s said the action assumes lender approval of a proposed amendment to the senior secured credit facilities that will, among other things, reset financial covenants, reduce the amount outstanding under Essential's term loan facility by $33 million to $498 million and extend the revolving credit facility maturity date to August 2018 from August 2017.

These proposed changes improve Essential's financial flexibility during a period of low natural gas and power prices and alleviate concerns the agency previously cited in the negative outlook, Moody’s added.

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