Moody’s revises Elwood view to positive

Moody's Investors Service said it affirmed the Ba3 rating on Elwood Energy LLC's senior secured bonds due 2026 and changed the outlook to positive from stable.

Moody’s said the positive outlook reflects the announced sale of Dynegy Inc.'s (CFR B2 stable) 50% ownership in Elwood to J-Power USA Development Co, Ltd., an indirect subsidiary of Electric Power Development Co., Ltd. (JPower, A1 stable). JPower, a substantially stronger sponsor, is expected to pay a purchase price of $172.5 million resulting in an implied enterprise value of around $500 million.

The agency views positively both JPower’s financial strength and their sizeable additional investment in Elwood that creates a material economic incentive to support the project if necessary.

Closing is expected in the fourth quarter.

© 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.