Helix Generation 3Q19 EBITDA rises 17% YoY

Helix Generation reported year-over-year improvement in EBITDA and gross margin in 3Q19, according to two sources familiar with the matter.

The LS Power-owned borrower booked USD 49m of EBITDA for the quarter, compared to USD 42m in 3Q18. Gross margin for the quarter totaled USD 76m, up from USD 69m last year, the sources said.

The company’s USD 857m Libor+ 375bps TL due 2024 is quoted today in the 95.687/96.542 context, compared to 94.896/95.938 before the earnings, according to Markit.

The company is levered 12.8x, based on LTM EBITDA to USD 70m and USD 894m of total debt, one of the sources said.

Power pricing is expected to improve over the next two years in the New York City Zone J region in which Helix’s Ravenswood Generating Station operates, the sources said. That should lead to further earnings improvement in 2020, they added.

Helix’s Ravenswood power plant, a 2,480 megawatts, multiple-unit natural gas generating facility located in Queens, provides 5% of New York City’s power demand (estimated 20% of peak load), according to a Moody’s report from December.

“People are less concerned about the quarter per se though and are paying more attention to year-end for 2020 guidance. We want to see the impact of the tightening supply and higher capacity prices in Zone J,” one of the sources said.

As of 30 September, liquidity consisted USD 15m of cash in addition to availability under its revolver, the sources said.

LS Power did not respond to a request for comment.

2019 Debtwire

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