Moody's rates Bridge Northeast loans Ba2

Moody's Investors Service said it assigned a Ba2 rating to Generation Bridge Northeast, LLC's (GB NE) planned $950 million senior secured credit facilities, made up of a $850 million term loan B due in 2029 and a $100 million revolving credit facility due in 2028.

“The Ba2 rating reflects the issuer's anticipated robust degree of contracted cash flow anchored by the tolling agreement with NRG Energy, Inc. (Ba1 stable) for Arthur Kill Generating Station's (Arthur Kill) entire capacity and energy through April 2025 and Bridgeport Harbor 5 (BH5)'s cleared capacity revenue through 2026 via a 7-year inflation-protected capacity price lock at $9.23 per kilowatt-month for 2023-24 planning year, which together contributes to a high degree of certainty around GB NE's near-term cash flows,” Moody’s said in a press release.

The proceeds will be used to repay Generation Bridge II, LLC's outstanding senior secured credit facilities, make a distribution to the sponsors and pay transaction-related fees and expenses. Moody's plans to withdraw the Ba2 rating on GB II's three credit facilities once GB NE's new credit facilities close.

The outlook is stable.

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