S&P ups Nautilus loan to CCC

S&P said it raised the rating on Nautilus Power LLC’s subordinated non-extended term loan B to CCC from D. The 6 recovery rating (0%-10%; rounded estimate 0%) is unchanged.

The company completed an amend and extend transaction that the agency said it viewed as distressed and the equivalent of default for the non-extended part of the loan. Nautilus extended the maturity of about 98% of its debt outstanding to November 2026, thereby addressing its near-term refinancing risk. The non-extended TLB is due in May 2024, with $13 million outstanding as of the executed date.

“We raised the issue-level rating on the project's subordinated non-extended TLB to CCC from D, based on the proximity to maturity and the possible need for additional liquidity to repay this portion given its subordinated status, as almost all sources of revenues and reserves are now part of the super-priority collateral package,” the agency said in a press release.

The B issue-level and 3 recovery ratings on extended super-priority term loan B is unchanged.

The outlook on the subordinated tranche is negative.

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