S&P Global Ratings assigned its preliminary ?BB? project finance issue rating and ?1+? recovery rating to Invenergy Thermal Operating I LLC ?s (ITOI) proposed $725 million term loan B and $50 million term loan C due in May 2032. We do not rate the proposed $150 million revolving credit facility due May 2030. The preliminary '1+' recovery rating indicates our expectation for full recovery (100%) in a default scenario. ITOI will use the net proceeds to repay its existing term loan B ($246 million outstanding), fund a sponsor distribution (about $459 million), and pay transaction costs. Under our base case, we include an additional $75 million of incremental permitted debt that requires rating agency affirmation at a ?BB-? rating under
