Bulletin: Kestrel Acquisition LLC Evaluated On Stand-Alone Basis Following Sale Of Generating Station; No Impact To Ratings

TORONTO (S&P Global Ratings) April 12, 2024--Kestrel Acquisition LLC (B/Stable) remains a project finance transaction that we evaluate on stand-alone basis following the announcement of the sale of its Hunterstown Generating Station earlier this year; we note the ownership change to LS Power from Platinum Equity does not impact the rating. We expect the project to maintain its separateness from the new owner through the implementation of anti-filing mechanisms like separateness provisions that mitigate risks of an involuntary filing, and the retention of independent directors to the governance board, which we view as a mitigating factor from a voluntary filing. As of the third quarter of 2023, Kestrel had $380 million of term loan B outstanding due June 1, 2025,

...TORONTO (S&P Global Ratings) April 12, 2024--Kestrel Acquisition LLC (B/Stable) remains a project finance transaction that we evaluate on stand-alone basis following the announcement of the sale of its Hunterstown Generating Station earlier this year; we note the ownership change to LS Power from Platinum Equity does not impact the rating. We expect the project to maintain its separateness from the new owner through the implementation of anti-filing mechanisms like separateness provisions that mitigate risks of an involuntary filing, and the retention of independent directors to the governance board, which we view as a mitigating factor from a voluntary filing. As of the third quarter of 2023, Kestrel had $380 million of term loan B outstanding due June 1, 2025, and $31.4 million revolving credit facility due May 1, 2025....

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