Moody’s rates Invenergy loans B1

Moody's Investors Service said it assigned a rating of B1 to Invenergy Thermal Operating I LLC's proposed $537 million seven-year senior secured term loan and its $70 million five-year senior secured revolving credit facility.

Proceeds from the term loan, along with $100 million of equity funds, will be used to recapitalize Invenergy Clean Power LLC's interests in a portfolio of six gas fired generating facilities (net capacity of 2,029 MW) and will repay about $225 million of project level debt outstanding as well as roughly $380 million in corporate debt. Pro-forma for the transaction, remaining project level debt will be about $440 million.

The outlook is stable.

Moody’s said the B1 rating reflects the geographic and cash flow diversity of Invenergy's portfolio of assets, many of which benefit from long term power sales arrangements. Although these contracts provide stability for a portion of Invenergy's cash flow, the rating recognizes Invenergy's meaningful dependence on the more volatile cash flows that are expected to come from the sale of merchant capacity and energy.

In addition, the rating considers the significant leverage that is being employed at the project, and the structurally subordinate position of the Invenergy lenders for four of the six projects, the agency said. It also reflects the solid performance of the operating projects, limited construction risk, and a good liquidity position.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.