S&P rates EquiPower loan BB

Standard & Poor's said it assigned a preliminary BB rating and preliminary 1 recovery rating to EquiPower Resources Holdings LLC's proposed $610 million first-lien term loan due 2019.

The outlook is stable.

The agency also said it affirmed the BB rating and 1 recovery rating on EquiPower's existing senior secured term loan due 2018 and the upsized senior secured revolving credit facility due 2017.

All debt is pari passu in this refinancing, S&P said.

The proceeds will be used to purchase the Kincaid coal plant and equity interest in the Elwood plant, the agency said.

The ratings reflect the company's overall competitive portfolio of natural gas-fired power plants, S&P said.

The agency said it believes that the projected debt burden at maturity of about $155 per kilowatt on a consolidated basis is likely refinanceable at reasonable terms.

The stable outlook reflects predictable cash flows from some hedges and greater exposure to capacity prices in the region, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.