S&P rates Moxie loans B

Standard & Poor's said it assigned preliminary B ratings to Moxie Liberty's $358 million secured term loan B-1, $200 million term loan B-2 and $42 million LOC facility.

The agency also said it assigned a preliminary 1 rating to the debt.

The outlook is stable.

The term loan B will consist of a first-draw $358 million loan and a $200 million delayed-draw loan.

The 12-month delayed-draw loan will be priced, now but will carry a 2% commitment fee. Almost $363 million in equity is cash-funded at close.

S&P said the 1 recovery rating indicates 90% to 100% expected default recovery.

The $119 million of mezzanine debt at intermediate holding company Panda Liberty Intermediate Holdings II LLC is unrated, but included in the debt-service coverage ratio calculations, the agency said.

The ratings reflect construction risks of the project and higher-than-average construction costs due to labor costs in the Northeast and the use of air-cooled condensers, S&P said.

The strengths that offset these risks include the project's strategic location in the Marcellus shale region, which will likely provide access to the lowest gas prices in the Northeast, the agency said.

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