...September 26, 2023 NEW YORK (S&P Global Ratings) Sept. 26, 2023--S&P Global Ratings today assigned its '###' issue-level rating to Constellation Energy Generation LLC's proposed $1.0 billion senior unsecured notes, which the company expects to issue in two equal tranches maturing 2034 and 2054, respectively. We expect that Constellation may upsize the issuance to $1.4 billion depending on market conditions. The company intends to use the net proceeds from these notes primarily to fund its acquisition of NRG Energy Inc.'s ownership stake in the South Texas Project (STP) nuclear station. Constellation anticipates taking on $500 million of incremental leverage related to the cash flows from the asset acquisition. The company is raising the incremental debt to conform its capital structure to its long-term capitalization targets. While the transaction is not leverage neutral, we note that the company's has augmented its revenue with federal tax credits provided by the Inflation Reduction Act...
