Moody's assigns Bosque loan B1

Moody's Investors Service said it assigned a provisional rating of B1 with a stable outlook to Bosque Power Co., LLC's $412.5 million first-lien senior secured credit facility.

The agency said that the credit facility will consist of a $25 million five-year revolving credit facility and a $387.5 million seven-year term facility, which will include a $203 million construction sub-amount and a $95 million deposit letter of credit sub-amount used to cash collateralize letters of credit.

The debt will be secured by a first-lien interest in all the assets and equity of the borrower, Moody's noted, adding that proceeds of the term loan will be used together with a $348.3 million equity contribution to acquire the Bosque gas-fired electric generating facility from Broadway Gen.

According to Moody's analyst Aaron Freedman: "The B1 rating reflects the plant's significant merchant exposure, with just 30% of the facility's post-conversion capacity hedged for three years."

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