Research Update: Invenergy Thermal Operating I LLC 'BB' Rating Removed From CreditWatch Negative And Affirmed Following Waiver Agreement

On April 28, 2021, Invenergy Thermal Operating I LLC's (ITOI) amendment to its credit agreement was signed and approved by its lenders. Under the amendment, its lenders waived any claim to a default or event of default related to the potential default of Ector County Energy Center LLC or the termination of its heat rate call option (HRCO) because of a default. Our CreditWatch with negative implications indicated that, absent a favorable settlement with Ector's HRCO counterparty, ITOI's term loan B lenders would have the option to declare an event of default, which could ultimately lead to an acceleration of its debt repayment. We are affirming our 'BB' rating on ITOI's debt and removing it from CreditWatch, where we placed

...- On April 28, 2021, Invenergy Thermal Operating I LLC's (ITOI) amendment to its credit agreement was signed and approved by its lenders. Under the amendment, its lenders waived any claim to a default or event of default related to the potential default of Ector County Energy Center LLC or the termination of its heat rate call option (HRCO) because of a default. - Our CreditWatch with negative implications indicated that, absent a favorable settlement with Ector's HRCO counterparty, ITOI's term loan B lenders would have the option to declare an event of default, which could ultimately lead to an acceleration of its debt repayment. - We are affirming our '##' rating on ITOI's debt and removing it from CreditWatch, where we placed it with negative implications on March 1, 2021. The outlook is stable. - The stable outlook reflects that we now view the risk of a default as remote even though ITOI's negotiations with the HRCO counterparty are not settled. Additionally, our outlook reflects the...

Research Update