Research Update: Carroll County Energy LLC New Senior Secured Debt Rated 'BB' (Recovery Rating: '1')

Carroll County Energy LLC (CCE) has issued a $456.5 million senior secured term loan B due 2026 and $60 million senior secured revolving credit facility and $10 million working capital facility due 2026. CCE used proceeds from the issuance primarily to refinance the prior construction term loan and fund a distribution to sponsors. CCE is a natural gas-fired power plant that sells energy and capacity into the Pennsylvania-New Jersey-Maryland (PJM) Interconnection, a market pressured by weak demand growth and oversupply. We are assigning a 'BB' rating to Carroll County Energy LLC's senior secured debt. The preliminary '1' recovery rating indicates our expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of default. The stable outlook reflects our

...+ Carroll County Energy LLC (CCE) has issued a $456.5 million senior secured term loan B due 2026 and $60 million senior secured revolving credit facility and $10 million working capital facility due 2026. CCE used proceeds from the issuance primarily to refinance the prior construction term loan and fund a distribution to sponsors. + CCE is a natural gas-fired power plant that sells energy and capacity into the Pennsylvania-New Jersey-Maryland (PJM) Interconnection, a market pressured by weak demand growth and oversupply. + We are assigning a '##' rating to Carroll County Energy LLC's senior secured debt. The preliminary '1' recovery rating indicates our expectation of very high (90%-100%; rounded estimate: 95%) recovery in the event of default. + The stable outlook reflects our expectation that CCE will maintain a debt services coverage ratio (DSCR) above 2.0x over the seven-year debt tenor. We also expect CCE to maintain a capacity factor around 90% over the next seven years. We believe...

Research Update