Moody’s rates WG Partners loans Ba3

Moody's Investors Service said it assigned a Ba3 rating to WG Partners Acquisition, LLC's $245 million seven-year senior secured term loan and $15 million five-year senior secured working capital facility.

A separate unrated $45 million, seven-year senior secured letter-of-credit facility will also be established at closing.

The outlook is stable.

Net debt proceeds plus about $280 million of equity are expected to fund the purchase of a net 1,521 megawatt (MW) portfolio of contracted generation assets, refinance debt at Freif NAP I Holdings III, LLC (Freif: Ba3 stable), repay debt at the 225 MW Trinity plant, fund a $10 million liquidity reserve, and pay for transaction costs.

Roughly $342 million of operating company level debt will remain.

Moody's intends to withdraw Freif’s ratings shortly after financial close.

Moody’s said the Ba3 rating is supported by WG Partners’ long-term contracted cash flows, a portfolio of mostly gas fired power generation assets using proven technology, material equity contribution by the new sponsors and long history of operations for the underlying assets.

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