S&P lifts Tidal Power loans

S&P said it raised the issue-level rating on the senior secured debt and revolving credit facility co-issued by Tidal Power Holdings LLC and APLP LP to BB from BB- and revised the recovery ratings to 1 from 2. The agency also affirmed Tidal Power’s B+ issuer rating.

“Since the $370 million term loan B (TLB) was issued in 2021, the borrowing group has repaid $252 million as of second-quarter 2023. This repayment was funded by $58 million in asset sales of Chambers and Manchief, and the rest is funded through excess cash sweep.

“As a result of the cash sweep and asset sales, debt to EBITDA decreased to 1.6x in fourth-quarter 2022 from 2.7x in fourth-quarter 2021. We expect the borrowing group will continue sweeping from 100% of operating cash flow to reduce leverage in future periods. We also expect the proceeds from the 50.15% ownership sale of Frederickson will be used for debt repayment,” S&P said in a statement.

The outlook is stable.

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