East Coast Power LLC owns interests in two gas-fired, combined-cycle cogeneration facilities in Linden, N.J. with aggregate capacity of 940 MW. These are the 775 MW (average capacity) Linden 1-5 facility and the 165 MW Linden 6 facility. All East Coast Power revenue comes from the Linden projects. The 'BBB-' rating reflects the following risks: East Coast Power's high leverage potentially limits financial flexibility. The security package is fairly weak, as lenders do not have a secured interest in the Linden 1-5 assets. Distributions to East Coast Power from the Linden 1-5 units are subordinated to payments to a preferred limited partner up to a specified rate of return, and payments to service debt on a $250 million amortizing term...
Companies mentioned in this report are:
- Enron Corp.
- The Goldman Sachs Group Inc.
- Consolidated Edison Inc.
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