Nautilus Power LLC's Senior Secured Debt Rated 'B+' (Recovery Rating: '2'); Outlook Stable

Nautilus Power LLC (formerly known as Essential Power LLC) has refinanced its existing $565 million ($489 million outstanding) first-lien term loan and $75 million revolving credit facility. We are assigning our 'B+' issue rating to the project's $575 million senior secured term loan and $75 million senior secured revolving credit facility, maturing in 2024 and 2022, respectively. The outlook is stable. The recovery rating is '2'. The company will use the proceeds from the recapitalization to refinance the debt related to the June 2016 acquisition and also pay a dividend to the sponsor, funds affiliated with Carlyle Power Partners, an investment fund sponsored by The Carlyle Group. The incremental $86 million of debt, continued weak market conditions, and a recent

...+ Nautilus Power LLC (formerly known as Essential Power LLC) has refinanced its existing $565 million ($489 million outstanding) first-lien term loan and $75 million revolving credit facility. + We are assigning our 'B+' issue rating to the project's $575 million senior secured term loan and $75 million senior secured revolving credit facility, maturing in 2024 and 2022, respectively. The outlook is stable. The recovery rating is '2'. + The company will use the proceeds from the recapitalization to refinance the debt related to the June 2016 acquisition and also pay a dividend to the sponsor, funds affiliated with Carlyle Power Partners, an investment fund sponsored by The Carlyle Group. + The incremental $86 million of debt, continued weak market conditions, and a recent revision to S&P Global Rating's capacity price assumptions have led to a lower rating than the rating on the existing facilities issued by Essential Power. + The stable outlook reflects our view that debt service coverage...

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