Research Update: EFS Cogen Holdings I LLC New Term Loan And Credit Facility Assigned 'BB-' Rating (Recovery Rating: '2')

On Oct. 9, 2020, S&P Global Ratings assigned its 'BB-' project finance issue rating and '2' recovery rating to EFS Cogen Holdings I LLC's (EFS Cogen) new $1.0 billion term loan B (TLB) and $100 million revolving credit facility (RCF). The rating replaces the preliminary 'BB-' project finance issue rating we assigned Sept. 8, to EFS Cogen's proposed debt issuance, which we affirmed Sept. 23, after the project upsized the TLB. EFS Cogen used the proceeds from the issuance to refinance existing debt, as well as for general corporate purposes, including a one-time dividend payment to its equity holders, and payment of transaction-related fees and expenses. We also withdrew our 'BB-' issue rating on the company's refinanced $1.05 billion TLB

...- On Oct. 9, 2020, S&P Global Ratings assigned its '##-' project finance issue rating and '2' recovery rating to EFS Cogen Holdings I LLC's (EFS Cogen) new $1.0 billion term loan B (TLB) and $100 million revolving credit facility (RCF). - The rating replaces the preliminary '##-' project finance issue rating we assigned Sept. 8, to EFS Cogen's proposed debt issuance, which we affirmed Sept. 23, after the project upsized the TLB. - EFS Cogen used the proceeds from the issuance to refinance existing debt, as well as for general corporate purposes, including a one-time dividend payment to its equity holders, and payment of transaction-related fees and expenses. - We also withdrew our '##-' issue rating on the company's refinanced $1.05 billion TLB and $125 million RCF, which are being replaced by the new debt. - The rating reflects the project's established position in the New York Independent System Operator (NYISO) Zone J, which exhibits considerable barriers to entry because of high replacement...

Research Update