Research Update: Invenergy Thermal Operating I LLC's Senior Notes Rated 'BB-'; Outlook Stable

After its pricing on Aug. 4, 2023, and review of final transaction documents, S&P Global Ratings assigned its 'BB-' rating to Invenergy Thermal Operating I LLC's (ITOI) $325 million term loan B due in 2029 and $25 million term loan C due in 2029. We do not rate the $150 million revolving credit facility due in 2028. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 75%) recovery in a default scenario. ITOI will use the proceeds to refinance its existing term loan B ($234 million outstanding), repay debt used to fund the construction of the now operational Nelson Expansion (NEX) project (about $52 million), cash fund about $25 million of letters of credit, and pay a

...- After its pricing on Aug. 4, 2023, and review of final transaction documents, S&P Global Ratings assigned its '##-' rating to Invenergy Thermal Operating I LLC's (ITOI) $325 million term loan B due in 2029 and $25 million term loan C due in 2029. We do not rate the $150 million revolving credit facility due in 2028. - The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 75%) recovery in a default scenario. - ITOI will use the proceeds to refinance its existing term loan B ($234 million outstanding), repay debt used to fund the construction of the now operational Nelson Expansion (NEX) project (about $52 million), cash fund about $25 million of letters of credit, and pay a distribution of about $37 million to sponsors Invenergy Clean Power LLC and Infrabridge's Global Infrastructure Fund Platform. - Compared to the prior project structure, the project portfolio consists of Grays Harbor, Nelson, St. Clair (all three part of the original portfolio),...

Research Update