Moody’s gives Tidal Power facilities Ba2

Moody's Investors Service said it gave a Ba2 rating to Tidal Power Holdings, LLC's planned facility, consisting of a $360 million senior secured term loan due 2027 and a $45 million senior secured revolving credit facility due 2025. Tidal Power is a wholly-owned affiliate of I Squared Capital, an independent global infrastructure investment manager.

“The Ba2 rating reflects the high-quality cash flow expected to be generated by the portfolio over the near-term owing to a high reliance on contractual arrangements. Excess annual cash flow, as well as the proceeds under an executed agreement relating to the sale of the Manchief peaking station in mid-2022, are required to be used for debt reduction. Near-term debt reduction under all sensitivities considered is significant and is a driver for the rating outcome,” Moody’s said in a press release.

Term loan proceeds will help fund I Squared's pending acquisition of Atlantic Power Corp.

Once the deal is completed, Tidal Power, along with an affiliated Canadian co-borrower, will pledge their indirect ownership interest in 15 operating natural gas and solid fuel-fired power plants in the United States and Canada previously indirectly held by Atlantic Power, Moody’s said in a press release.

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