Moody's cuts Terra-Gen debt to B1

Moody's Investors Service said it assigned a revised B1 rating to Terra-Gen Finance Co., LLC's proposed $240 million of senior secured credit facilities, consisting of a $215 million senior secured term loan and a $25 million senior secured working capital facility, both due 2012.

The outlook is stable.

Proceeds from the loan will be used solely to refinance the existing bridge facility and the working capital facility will be used to provide working capital from time to time and for other general corporate purposes. It will be used to support the issuance of letters of credit to replace existing letters of credit.

The loans were previously rated Ba3, Moody' said, and the lower rating is due to the higher debt amount resulting in a projected higher refinancing amount.

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