Research Update: LSP Madison Funding LLC's $750 Mil. Term Loan Assigned Prelim. 'BB+' Rating; Stable Outlook Jun 12

Standard & Poors, June 2012

Abstract
U.S. power generation company LSP Madison Funding LLC proposes to issue a $750 million secured term loan facility to recapitalize a portfolio of gas-fired and hydro generation assets currently owned by LS Power Equity Partners II L.P. The borrower has an option to issue an incremental $50 million first-lien working capital facility. We have assumed this option is taken and to account for this we have included an additional $50 million of debt in our credit metrics. We are assigning our preliminary 'BB+' long-term rating to the first-lien facilities. In addition, we are assigning preliminary recovery ratings to the term loan and optional working capital facility. The stable rating outlook reflects our expectations that the project's more stable revenue streams,...

Companies mentioned in this report are: LSP Madison Funding LLC
Action: New Rating
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

LSP Madison Funding LLC

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