S&P affirms Wolf Hollow loan; outlook stable

Standard & Poor's said it affirmed its B rating on Wolf Hollow I LP's first-lien $260 million senior secured bank facility and $30 million working capital facility.

At the same time, the agency said it revised the outlook to stable from negative on all facilities.

The $260 million debt consists of a $156 million term loan along with a $104 million synthetic letter of credit, S&P added. The recovery ratings on the first-lien facilities remain at 1.

In addition, the agency said it affirmed the CCC+ rating on the $110 million second-lien term loan and revised the outlook to stable from negative.

The recovery rating on the second-lien facilities remains at 4.

"The outlook revision to stable on all of the ratings stems from the power plant's consistently improved operating and financial performance, combined with its expectation of continued performance consistent with the B rating on the first-lien facilities--low leverage offset by minimal cash swept to pay down debt," said S&P credit analyst Justin Martin.

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