Moody's rates Revere Power loan Ba3

Moody's Investors Service said it assigned a Ba3 rating to Revere Power, LLC's proposed $586 million senior secured credit facilities, consisting of a $445 million seven-year term loan B, $86 million seven-year term loan C and $55 million five-year revolving credit facility.

The outlook is stable.

The proceeds from the term loan B, combined with about $169 million of equity contributed by the Carlyle Power Partners II, will be used to fund the acquisition of three natural gas-fired power plants in New England from Emera, Inc. for $590 million, Moody's said.

The proceeds from the term loan C will be used to cash collateralize letters of credit issued by the borrower in the normal course of business, the agency said.

The ratings consider the near-term cash flow certainty associated with the forward sale of the borrower's generating capacity and the assets' sound operating history and competitive generating profiles, Moody's said.

The ratings also reflect the borrower's exposure to merchant power market pricing volatility, meaningful capital expenditures program and refinancing risk, the agency said.

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