...+ We are assigning a '##' rating to Kestrel Acquisition LLC's proposed $400 million senior secured term loan B and $40 million senior secured revolving credit facility. The proceeds from the debt issuance will be used to fund a portion of the purchase price for its pending acquisition of the Hunterstown combined cycle gas turbine in Pennsylvania. The recovery rating is '1'. + The power plant is subject to fully merchant cash flows, with exposure to capacity prices (in uncleared periods) and power prices within the PJM market, which are pressured by weak demand growth and oversupply. + The plant also has the operational risks characteristic of power generators, although there is a strong operational track record. We believe that energy dispatch will be relatively high given the low heat rate, high expected availability, and access to inexpensive natural gas. + The outlook is stable, reflecting our expectations for an average annual capacity factor in the 65%-70% range, spark spreads that...
