S&P rates Generation Bridge loans BB

S&P said it assigned its preliminary BB rating to Generation Bridge LLC's proposed $480 million term loan B and $10 million term loan C. The recovery rating is 2.

The proceeds will be used to finance part of the purchase price of certain power generation assets from NRG Energy Inc., fund restricted cash and pay transaction costs associated with the issuance.

Generation Bridge will own an asset portfolio with an average net capacity of 3.6 GW across NYISO, CAISO, and ISO-NE; and six assets, Arthur Kill (873 MW), Oswego (1,635 MW), Sunrise (564 MW), Long Beach (209 MW), CT Jets (169 MW), Devon (166 MW), S&P noted. Generation Bridge is wholly owned by affiliates of Arclight Capital Partners LLC.

“The project's merchant revenues represent a mix of cash flows from multiple assets across different markets. Generation Bridge's portfolio is diversified from an asset, technology, and geographic standpoint, which distinguishes it from single-asset generation facilities that primarily rely on a single fuel and market to generate cash flow,” the agency said in a press release.

The outlook is stable.

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