Research Update: EFS Cogen Holdings I LLC Term Loan B, Term LOC, And Revolver Assigned Preliminary 'BB-' Rating; Outlook Stable

S&P Global Ratings assigned its preliminary 'BB-' project finance rating to EFS Cogen Holdings I LLC's (Linden Cogen) proposed $1 billion senior secured term loan B (TLB), $60 million term letter of credit (TLOC) facility, and $55 million super priority revolving credit facility (RCF). The recovery rating for the TLB and TLOC is '1', and the recovery rating for the RCF is '1+'. The project's operating risk profile reflects its well-established position in one of the most premium merchant power markets in the U.S., access to some contractual cash flows, operational and technical track record, and exposure to market risks throughout the forecast operating life. Based on our view of Linden Cogen's competitive potential, as well as projections of market-driven

...- S&P Global Ratings assigned its preliminary '##-' project finance rating to EFS Cogen Holdings I LLC's (Linden Cogen) proposed $1 billion senior secured term loan B (TLB), $60 million term letter of credit (TLOC) facility, and $55 million super priority revolving credit facility (RCF). The recovery rating for the TLB and TLOC is '1', and the recovery rating for the RCF is '1+'. - The project's operating risk profile reflects its well-established position in one of the most premium merchant power markets in the U.S., access to some contractual cash flows, operational and technical track record, and exposure to market risks throughout the forecast operating life. - Based on our view of Linden Cogen's competitive potential, as well as projections of market-driven variables such as energy and capacity pricing across the New York Independent System Operator (NYISO), we forecast a minimum debt service coverage ratio (DSCR) of 1.56x through the forecast period (2024-2040). - The stable outlook...

Research Update