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

On Sept. 8, 2020, S&P Global Ratings assigned its preliminary 'BB-' project finance issue rating to EFS Cogen Holdings I LLC's (EFS Cogen) new $950 million term loan B (TLB) and $100 million revolving credit facility (RCF). We also assigned a preliminary '2' recovery rating to the debt. EFS Cogen will use 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. The 'BB-' rating on the existing TLB and RCF is unchanged, and we will withdraw it at the close of the proposed transaction, which is intended to repay that debt. The rating reflects the project's established

...- On Sept. 8, 2020, S&P Global Ratings assigned its preliminary '##-' project finance issue rating to EFS Cogen Holdings I LLC's (EFS Cogen) new $950 million term loan B (TLB) and $100 million revolving credit facility (RCF). We also assigned a preliminary '2' recovery rating to the debt. - EFS Cogen will use 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. - The '##-' rating on the existing TLB and RCF is unchanged, and we will withdraw it at the close of the proposed transaction, which is intended to repay that 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 and development costs, as well as limited technology choices due to environmental restrictions. - Based on our view of...

Research Update