S&P assigns BB to WG Partners loans

S&P said it assigned its BB issue-level rating and 1 recovery rating to WG Partners Acquisition LLC's $245 million senior secured term loan B due 2023, $45 million letter-of-credit facility due 2023 and $15 million revolver due 2021.

The outlook is stable.

The 1 recovery rating indicates an expectation of very high (90%-100%) recovery of principal in the event of a payment default.

The company entered into a purchase and sale agreement with Freif NAP I Holdings II LLC (owned by First Reserve) for the purchase of a portfolio of 13 electric generation assets located throughout the U.S. and in Trinidad and Tobago with total generation capacity of 1,521 MW.

The credit facilities and about $280 million of equity were used to support the purchase of the assets, pay down the existing term loan B and the project-level debt at Trinity (one of the assets), fund a liquidity reserve account and pay for transaction costs.

The term loan will be repaid over time through minimal mandatory amortization and a cash flow sweep amounting to 50% of excess cash flow or an amount sufficient to meet specific target debt balances, whichever is greater.

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