S&P assigns Mackinaw Power bonds BBB-, loan BB-

Standard & Poor's said it assigned its BBB- rating to Mackinaw Power LLC's $288.9 million senior secured bonds maturing 2023.

At the same time, S&P said it assigned its BB- rating to Mackinaw Power Holdings LLC's $147 million senior secured term loan due 2015 while the recovery rating on the term loan is 2.

The outlook is stable.

Proceeds from the issue will be used to purchase five contracted natural gas-fired electricity generation assets from Progress Ventures Inc. and Progress Genco Ventures LLC, subsidiaries of Progress Energy Inc., the agency said, noting that the ratings incorporate that under the company's base case, asset concentration of about 57% of the total contracted cash flow during the term of the bonds through 2023 is provided by two assets.

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