Moody’s gives Compass Power facilities Ba3

Moody's Investors Service said it assigned a Ba3 rating to Compass Power Generation, LLC's $760 million senior secured credit facilities consisting of a $700 million seven-year term loan and a $60 million five-year revolving credit facility.

The outlook is stable.

Proceeds from the term loan are expected to repay existing project level debt, pay an equity distribution to the sponsor Starwood Energy Group and fund a capital expenditure reserve account. Compass owns three power generating assets with a combined generating capacity of about 1,200 megawatts (MW).

Moody’s said the Ba3 rating is supported by the more than $500 million of revenue expected to be earned during the tenor of the term loan under a long-term capacity contract with Long Island Power Authority (A3, stable) and from capacity auctions in each of PJM and ISO-New England markets.

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