Research Update: Carroll County Energy LLC Senior Secured Debt Rating Affirmed On Announced TLB Upsizing And Repricing; Outlook Stable

On Jan. 13, 2025, Carroll County Energy LLC (CCE) announced a repricing and upsizing of its term loan B (TLB). The project is looking to add $25 million to its $404 million outstanding ($425 million original issue) TLB due 2031. CCE will use the proceeds from the add-on to fund distributions to its owners and pay transaction fees. S&P Global Ratings affirmed its 'BB-' rating on CCE's $429 million TLB due June 2031. The '2' recovery rating is unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 85%) recovery in a default scenario. Based on our view of industry factors and market-driven variables (such as power demand and the pace and magnitude of the retirement of uneconomical units) as well

...- On Jan. 13, 2025, Carroll County Energy LLC (CCE) announced a repricing and upsizing of its term loan B (TLB). The project is looking to add $25 million to its $404 million outstanding ($425 million original issue) TLB due 2031. CCE will use the proceeds from the add-on to fund distributions to its owners and pay transaction fees. - S&P Global Ratings affirmed its '##-' rating on CCE's $429 million TLB due June 2031. The '2' recovery rating is unchanged, indicating our expectation for substantial (70%-90%; rounded estimate: 85%) recovery in a default scenario. - Based on our view of industry factors and market-driven variables (such as power demand and the pace and magnitude of the retirement of uneconomical units) as well as commodity and capacity pricing, we forecast a minimum debt service coverage ratio (DSCR) of 1.89x and a median DSCR of 1.89x for CCE (including the post-refinancing period). - The stable outlook reflects our expectation for high levels of availability and dispatch,...

Research Update