Research Update: Lightning Power LLC Assigned 'BB-' Rating; Debt Rated 'BB'; Outlook Stable

We assigned our 'BB-' corporate credit rating to Lightning Power LLC (Lightning). Lightning is a newly formed independent power producer (IPP) that owns about 10.8 gigawatts (GW) of gas-fired generation. We also assigned our 'BB' issue-level rating to Lightning's $1.5 billion term loan B due 2031 and $1.5 billion of senior secured notes due 2032. The issuances rank pari passu in seniority. It will use the proceeds primarily for retiring existing indebtedness and repricing existing power hedges. In addition, Lightning will also utilize the proceeds from the debt issuances to pay transaction-related fees and expenses, as well as a modest distribution to its sponsor, LS Power. The stable outlook incorporates our expectation that its S&P Global Ratings-adjusted debt to EBITDA

...- We assigned our '##-' corporate credit rating to Lightning Power LLC (Lightning). Lightning is a newly formed independent power producer (IPP) that owns about 10.8 gigawatts (GW) of gas-fired generation. - We also assigned our '##' issue-level rating to Lightning's $1.5 billion term loan B due 2031 and $1.5 billion of senior secured notes due 2032. The issuances rank pari passu in seniority. It will use the proceeds primarily for retiring existing indebtedness and repricing existing power hedges. In addition, Lightning will also utilize the proceeds from the debt issuances to pay transaction-related fees and expenses, as well as a modest distribution to its sponsor, LS Power. - The stable outlook incorporates our expectation that its S&P Global Ratings-adjusted debt to EBITDA will remain at 3.5x-3.75x through 2026, and the company will generate $400 million-$450 million of annual free operating cash flow (FOCF) during the same time....

Research Update