Research Update: Nautilus Power LLC Debt Rating Lowered To 'D'; New Superpriority Debt Rated 'B'

Nautilus Power LLC (Nautilus) executed an amend-and-extend transaction in April 2023 that has extended the maturity of about 98% of its debt outstanding to November 2026. The applicable margin on the instrument is also increasing to 5.25% from 4.25%. The non-extended term loan B (TLB) will remain due in May 2024. The non-extended tranche is now subordinated to the extended TLB from a payment priority standpoint, as well as from a collateral package perspective. S&P Global Ratings lowered its rating on the non-extended tranche to 'D' from 'B' and removed the rating from CreditWatch, where it was placed with negative implications Feb. 16, 2023. The 'D' rating reflects our view of the change in security and payment rights of the

...- Nautilus Power LLC (Nautilus) executed an amend-and-extend transaction in April 2023 that has extended the maturity of about 98% of its debt outstanding to November 2026. The applicable margin on the instrument is also increasing to 5.25% from 4.25%. - The non-extended term loan B (TLB) will remain due in May 2024. The non-extended tranche is now subordinated to the extended TLB from a payment priority standpoint, as well as from a collateral package perspective. - S&P Global Ratings lowered its rating on the non-extended tranche to 'D' from 'B' and removed the rating from CreditWatch, where it was placed with negative implications Feb. 16, 2023. The 'D' rating reflects our view of the change in security and payment rights of the non-extended tranche to a subordinated status from a senior secured position, which is less than the original promised. We will publish the new rating on the subordinated TLB in the upcoming days. - S&P Global Ratings also assigned its 'B' rating to the extended...

Research Update