S&P revises Carroll County recovery rating

S&P said it affirmed Carroll County Energy LLC’s BB term loan rating, but revised the recovery rating to 2 from 1. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 80%) recovery in a default scenario.

The revision follows Carroll upsizing its term loan by $25 million, which brings the balance to $434 million. Carroll also executed interest rate hedges on the term loan to better manage interest expense over the loan’s life. The company did not make any amendments to its $60 million revolver or its $10 million working capital facility due 2026, the agency said.

CCE plans to use the proceeds to pay a one-time distribution to equity holders and transaction-related fees and expenses.

The outlook is stable.

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