S&P elevates Franklin Energy

S&P said it raised its issuer credit rating on KAMC Holdings Inc. (doing business as Franklin Energy) to B- from CCC+. At the same time, S&P raised the rating on the company’s first-lien debt to B- from CCC+. The recovery rating on the senior secured debt remains 3.

The outlook is stable.

The company issued $135 million of preferred equity to replace its second-lien term loan.

“We now expect Franklin to generate sustained positive free operating cash flow (FOCF) under the revised capital structure and maintain adequate liquidity, supported by steadily improving operating performance,” S&P said in a news release.

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