DBRS Assigns Provisional Rating of A (high) with a Stable Trend to Lower Mattagami Energy Limited Partnership’s Senior Secured Bonds, Series 2016-1

DBRS Limited (DBRS) has today assigned a provisional rating of A (high) with a Stable trend to the $220 million Senior Secured Bonds, Series 2016-1 (the Bonds), due October 21, 2026, to be issued by Lower Mattagami Energy Limited Partnership (LMELP or the Issuer; rated A (high) and R-1 (low), Stable by DBRS). The provisional rating on the Bonds is based on the existing LMELP Issuer Rating of A (high), which was intended to apply to multiple senior secured bond issuances for approximately $1.8 billion in total. Please refer to the rating report dated June 14, 2016, for details.

Net proceeds from the Bonds offering will be used to repay outstanding commercial paper. Including the expected $220 million Series 2016-1, the total senior secured bonds outstanding will be approximately $1.795 billion. The Bonds will be issued by way of private placement and pursuant to a master trust indenture and supplemental indenture. The Bonds will be direct, secured and unsubordinated obligations of the Issuer, ranking pari passu with all other senior secured bonds. The Bonds are obligations of LMELP and are guaranteed by the affiliate, Lower Mattagami Limited Partnership. Until the Recourse Release Date, which is expected by the end of 2016, all senior secured bonds have full recourse to the sponsor, Ontario Power Generation Inc. (rated A (low) and R-1 (low) by DBRS). The Bonds offering is expected to settle on October 7, 2016, at which time DBRS will finalize its rating.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The applicable methodologies are Rating Project Finance and Rating Companies in the Regulated Electric, Natural Gas and Water Utilities Industry, which can be found on our website under Methodologies.