Moody's gives Generation Bridge loans Ba2

Moody's Investors Service said it gave a Ba2 rating to Generation Bridge, LLC's expected $540 million of senior secured credit facilities, made up of a $480 million term loan B due in 2028, a $10 million term loan C for cash collateralized letters of credit due in 2028 and a $50 million revolving credit facility due in 2026. The outlook is stable.

“The Ba2 rating primarily reflects the anticipated degree of diversified contracted cash flow anchored by the tolling agreement with NRG for Arthur Kill's entire capacity and energy through April 2025 which contributes to a high degree of certainty around GenBridge's near-term cash flows,” Moody’s said in a press release.

The proceeds and $220 million in cash equity being contributed by an ArcLight Capital Partners affiliate will be used to fund the acquisition of six power generation assets from NRG Energy, Inc., to fund reserves and cash collateral letter of credits and to pay transaction costs.

The outlook, Moody’s said, reflects an expectation Generation Bridge will generate stable consolidated financial metrics with FFO to debt between 15% to 20% and a consolidated debt-service coverage ratio between 2.5x to 3.5x.

© 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.