Bulletin: ExGen Renewables IV, LLC BB/Stable Rating Unaffected By Increased Debt Issuance Due To Reduced Interest Rate

CENTENNIAL (S&P Global Ratings) Nov. 15, 2017--S&P Global Ratings said today that its rating on renewable energy company ExGen Renewables IV, LLC (EGR IV; BB/Stable) is unaffected by the company's planned increase in debt issuance from $750 million to $850 million. Likewise, our 'BB+' issue rating and '2' recovery rating on EGR IV's term loan are also unchanged. We understand that EGR IV plans to issue a term loan up to $850 million, an increase from the initial $750 million issuance. However, partially offsetting this increase in debt is a reduction in the interest rate by 100 basis points from LIBOR + 400 to LIBOR + 300. As a result, we see leverage increasing, but we also believe the interest

...CENTENNIAL (S&P Global Ratings) Nov. 15, 2017--S&P Global Ratings said today that its rating on renewable energy company ExGen Renewables IV, LLC (EGR IV; ##/Stable) is unaffected by the company's planned increase in debt issuance from $750 million to $850 million. Likewise, our '##+' issue rating and '2' recovery rating on EGR IV's term loan are also unchanged. We understand that EGR IV plans to issue a term loan up to $850 million, an increase from the initial $750 million issuance. However, partially offsetting this increase in debt is a reduction in the interest rate by 100 basis points from LIBOR + 400 to LIBOR + 300. As a result, we see leverage increasing, but we also believe the interest rate reduction more than compensates for the increase in debt, with coverage ratios improving slightly under the new debt level. There are no changes in our assessment of the business risk profile, project level revenues or distributions to EGR IV from the 33 distinct projects in the EGR IV portfolio....

Bulletin