Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's assigns Ba2 to Race Point Power Sr. Sec. Term Loan

10 Nov 2010

$370 million of debt affected

New York, November 10, 2010 -- Moody's Investors Service has assigned a Ba2 rating to the $370 million senior secured term loan due 2017, for Race Point Power. The rating outlook is stable.

The Borrowers will actually consist of four individual holding companies that will be the indirect owners of equity interests in a portfolio of power projects in the US and Spain that are currently held indirectly by three separate funds of ArcLight Capital Partners, LLC ("ArcLight"). The Borrowers are Race Point Power II LLC, Race Point Power III LLC, Race Point Power IV LLC (the "US Borrowers") and NeoElectra Lux S.àr.l, the last of which is the Borrower in respect of the Spanish power assets (the "Euro Borrower" and together with the US Borrowers, the "Borrowers" or "Co-Borrowers"). Obligations of the Borrowers will be joint and several with respect to all obligations under the term loan. The $370 million senior secured term loan facility will be allocated to a US dollar-denominated tranche (the "Dollar Tranche") and a euro-denominated tranche (the "Euro Tranche"), in amounts that are still to be determined. Each US Borrower will be entitled to borrow a portion of the Dollar Tranche up to an agreed cap for such US Borrower. All the proceeds of the Euro Tranche will be borrowed by the Euro Borrower.

Proceeds from the transaction will be used (i) to refinance existing indebtedness (at existing holding company levels above the projects in order to simplify the capital structure); (ii) to acquire the remaining 50% interest of Crawfish (one of the US projects); (iii) to pay related transaction fees and expenses; (iv) for general corporate purposes, including permitted dividends; (v) to fund a liquidity and capex reserve to fund various project accounts; (vi) to fund a Lea Power reserve account and (vii) to cash collateralize permitted LCs or alternatively, ArcLight will post a letter of credit. The portfolio consists of 8 power generation investments with a total of 24 power plants throughout the US and Spain. The portfolio is composed of approximately 1,412MWs of combined generation capacity, with net ArcLight ownership totaling 1,272MWs. The assets are located in Connecticut, Maine, Michigan, Nevada, New Mexico, Pennsylvania, Texas and Spain. ArcLight has majority-owned stakes in 6 of the 8 investments and 100% ownership in 5 investments. There is project level debt at 6 of the 8 investments.

ArcLight is a private equity investment firm founded in 2001 focused exclusively on the power and energy sectors. ArcLight has approximately $6.8 billion under management, with over 6,000 net MWs in operation or construction across its four funds. ArcLight owns a diverse portfolio of companies in the power generation, transmission and distribution, midstream and upstream sectors.

The rating primarily reflects: (a) the diversity of a portfolio of 8 power projects in the US and Spain; (b) the largely contracted nature of the portfolio (90% of cash flows are contracted), which provides stable cash flows through long-term power purchase agreements, primarily with investment grade counterparties; and (c) the strong operating histories of the generation projects with commercially proven technologies. However, the recommendation also considers: (i) the high consolidated leverage that includes project level debt associated with the underlying project assets; (ii) regulatory risk and potential for changes to the regulated tariff structure in Spain as approximately 44% of cash flows come from projects at NeoElectra in Spain; (iii) refinancing risk; and (iv) the structurally subordinated position of the holding companies' lenders.

The Ba2 senior secured rating for the Borrowers considers the following strengths:

1) Diversified portfolio with five different primary fuel types (natural gas, hydro, diesel, waste coal and biomass) located across seven states and Spain

2) 90% of the cash flows are contracted

3) Diversified set of offtakers make up of PPAs with nine different entities, eight of which are investment grade

4) All Projects have solid availability factors and are operated and maintained by known and experienced service providers including CAMS, Dynegy, Terra-Gen and Cogentrix

5) Majority owned stakes in 6 of the 8 investments and 100% ownership of 5 projects, thereby providing for a high degree of operational and management control by ArcLight

The rating also reflects the following areas of credit concern:

1) High consolidated leverage

2) Regulatory risk as about 44% of the cash flows are coming from the projects at NeoElectra in Spain

3) The structurally subordinated position of the lenders to the holding company, in relation to existing debt at 6 of the 8 projects totaling approximately $440 million

4) Refinancing risk when the credit facility matures at the end of 2017, leaving about $133 million outstanding (35% of the original amount) in Moody's base case

5) Modest foreign exchange risk due to the Spanish projects; the joint and several nature of the obligations mean that the US dollar cash flows may be needed to support the Euro Tranche should there be a shortfall in the euro cash flows, and vice versa

6) Average age of the plants (10 years) potentially increases the operating risk over time.

The credit facilities will be secured on a pari passu basis by a first priority perfected security interest in substantially all assets of the Co-Borrowers (and their respective unencumbered wholly-owned subsidiaries), including cash distributions from each of the projects, the Co-Borrowers' equity interests in each of their direct or indirect subsidiaries (except to the extent prohibited by the terms of financing documents entered into at the project level, applicable law or the related project documents), all Co-Borrowers accounts, and the equity interests of the parent holding companies of each of the Borrowers (collectively, the "Holding Companies") in the Co-Borrowers. All obligations under the Facility will also be unconditionally guaranteed by each direct or indirect subsidiary of the Co-Borrowers (except to the extent prohibited by the terms of financing documents entered into at the project level or the related project documents) and each of the Holding Companies.

Moody's also considered structural features in the term loan agreement, including a cash sweep in years 1-4 equal to the greater of (i) 75% of excess cash flow after scheduled debt service and (ii) an amount required to achieve a target debt balance, and a cash sweep in years 5-7 of 100% of excess cash flow. The transaction provides for only a 1% required annual amortization, with additional amortization to be based upon the cash flow sweep mechanism. There is also a 6 month debt service reserve covering forward interest and scheduled debt service via cash or a letter of credit to be provided by ArcLight, a $13.4 million liquidity and capex reserve account, a $10 million reserve account in respect of the Hobbs Facility and a set of financial and other covenants that restrict the business and financial activities of the Borrowers.

The stable outlook reflects the expectation that the portfolio of projects will generate relatively stable and predictable cash flows, since the cash flows are derived from long term contracts with largely investment grade counterparties. The outlook also assumes the near term stability in the credit quality of the project off-takers and anticipates that the projects will continue to be operated in a manner that allows them to perform as expected.

Positive trends that could lead Moody's to consider an upgrade would include a more rapid pay down of the project level debt than currently projected and better than projected base case financial performance. Negative trends that could lead Moody's to consider a downgrade would include credit deterioration by key contractual off-takers, substantial operating performance difficulties that result in a meaningful loss of cash flow available for debt service, significant changes to the regulated tariff structure in Spain that is detrimental to the cash flows at NeoElectra, and financial performance that is consistently below expectations.

The rating is predicated upon final documentation in accordance with Moody's current understanding of the transaction and final debt sizing consistent with initially projected credit metrics.

The Co-Borrowers are special purpose entities formed by ArcLight Capital Partners, LLC to hold its interests in a portfolio consisting of 8 power projects in the US and Spain totaling 1,272 MWs of net generation.

The principal methodology used in this rating was Power Generation Projects published in December 2008.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings, public information, confidential and proprietary Moody's Investors Service information, and confidential and proprietary Moody's Analytics information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of assigning a credit rating.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

New York
Richard E. Donner
VP - Senior Credit Officer
Project Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Chee Mee Hu
MD - Project Finance
Project Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.

Moody's assigns Ba2 to Race Point Power Sr. Sec. Term Loan
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.