S&P rates EquiPower loans BB

Standard & Poor's said it assigned a preliminary BB rating to EquiPower Resources Holdings LLC's proposed $685 million first-lien term loan due 2018 and $90 million revolving credit facility due 2017.

The agency also said it assigned a preliminary BB rating to EquiPower's proposed $200 million second-lien term loan due 2019. The rating on the two liens is the same due to cross-default provisions, the agency said.

The outlook is stable.

The preliminary 1 recovery rating on the first-lien term loan and revolver indicates 90% to 100% expected recovery in a default and the 3 preliminary recovery rating on the second-lien term loan indicates 50% to 70% expected recovery.

The agency also said it affirmed the BB- ratings on EquiPower's existing senior secured term loan due 2018 and senior secured revolver due 2016, but revised the outlook to positive from negative due to the potential to be taken out with new debt.

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