S&P gives Bridge Northeast loan BB

S&P said it preliminarily gave BB issue-level and 1 recovery ratings to Generation Bridge Northeast LLC’s (GBNE or the project) planned $850 million senior secured term loan.

Sponsor ArcLight Capital Partners LLC is consolidating its two portfolio companies, Generation Bridge LLC (GB1), and Generation Bridge II LLC (GBII), into a single entity, Generation Bridge Northeast.

“Based on our view of GBNE's competitive potential, as well as projections of market-driven variables such as energy and capacity pricing across Nyiso and Isone, we forecast a minimum debt service coverage ratio (DSCR) of about 2.4x through the forecast period (2023-2044),” S&P said in a press release.

GBNE will use the proceeds to fund a $466 million distribution to ArcLight, fully repay the $351 million of debt at GBII, and pay transaction costs associated with the issuance. ArcLight has recently repaid the entire $428 million term loan B at GB1 from asset sale proceeds of one of the facilities in the GB1 portfolio.

The outlook is stable.

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