Constellation Renewables LLC

Overview Key strengths Key risks High cash flow predictability spurred by overall contractedness High reliance on distributions from Antelope Valley Solar Ranch (AVSR) Fully renewable portfolio Resource risk associated with wind and solar generation Closed-end portfolio with robust cash sweep Highly leveraged About 96% of the company?s cash flows are contracted until 2027, which should result in high cash flow predictability. We view renewable assets as likely to operate for longer and generally benefiting from a supportive regulatory framework. At the same time, wind and solar facilities could be susceptible to resource risks, which could affect overall generation. About 50% of the company?s cash flows are generated by AVSR. We view this as resulting in some concentration risk, given that

...Constellation Renewables LLC (formerly ExGen Renewables IV LLC) benefits from a high level of contractedness. About 96% of the company's cash flows are contracted until 2027, which should result in high cash flow predictability. We view having a fully renewable portfolio as credit positive. We view renewable assets as likely to operate for longer and generally benefiting from a supportive regulatory framework. At the same time, wind and solar facilities could be susceptible to resource risks, which could affect overall generation....

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