S&P gives Prime Energia notes BBB-

S&P said it gave a BBB- ratings to the $710 million of 10-years to be issued by Prime Energia SpA, EnfraGen Spain, SAU and EnfraGen Energia Sur, SAU.

In March, the issuers, or the project, completed the acquisitions of Termovalle, a 241 MW gas fired (dual-fuel) thermal plant in Colombia, and a portfolio of 27 MW of solar plants in Chile. The agency also received confirmation of the of the collateral package and the interest swaps confirmation from the bank loan facility.

“Despite some delays, we continue to view construction risk as limited, which doesn't constrain the rating, because the remaining 275MW Chilean back-up facilities are already under construction through a fixed-price EPC contract with Rolls Royce Power AG and TSK and have a very high degree of advance. The construction should be completed in the following three months, without further delays,” S&P said in a press release.

“The rating is driven by the operational risks of the project, which will be exposed to refinancing risk, after the loan and notes mature in 2025 and 2030, respectively. For the period 2021-2025, we expect a relatively stable cash flow generation thanks to the capacity payments in Colombia and Chile, and a contractual base in Panama. Our minimum DCSR is forecasted at 1.37x in 2023, and average of 1.78x until the end of the refinancing period in 2061, when all the debt is fully repaid,” the agency said.

The outlook is stable.

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