Moody’s rates Entergy Rhode Island loans Ba3

Moody's Investors Service said it assigned a Ba3 rating to Entergy Rhode Island State Energy Center, LP's senior secured credit facilities consisting of a $325 million senior secured term loan due 2022 and a $50 million working capital facility due 2020.

The outlook is stable.

The term loan and about $207 million of sponsor equity, provided by funds of Carlyle Group, will be used to acquire the facility from Entergy Corp. (Baa3, positive) resulting in an initially modest 61% debt to capital ratio. A portion of the proceeds will also fund a $20 million operating reserve and to pay transaction costs.

Entergy Rhode Island owns the Rhode Island State Energy Center (RISEC), a 583 megawatt (MW) (summer/winter average including ducts) combined cycle generating station in Johnston, R.I. Entergy Rhode Island’s name will be legally changed following financial close to reflect the new ownership.

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