...+ We are assigning a preliminary '##' rating to Kestrel Acquisition LLC's proposed $375 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 (CCGT) in Pennsylvania. The preliminary 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 Pennsylvania-Jersey-Maryland (PJM) market pressured by weak demand growth and oversupply in recent years. + The plant also has 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 and access to inexpensive natural gas. + The outlook is stable, reflecting our expectations for an average annual capacity factor in the...
