Moody’s assigns EFS Cogen loans Ba3, Ba2

Moody’s Investors Service said it assigned a Ba3 rating to EFS Cogen Holdings I LLC’s proposed $950 million senior secured term loan B due 2027 and a Ba2 rating to EFS Cogen’s super senior secured $100 million revolving credit facility due 2025.

Term loan proceeds will be used to repay an outstanding term loan of about $839.1 million, to make a distribution to the equity sponsors and to pay transaction fees and expenses. The new senior secured revolver will replace the liquidity facility.

Moody’s intends to withdraw the Ba3 rating on the existing secured term loan and the secured revolving credit facility upon the closing of the new credit facilities.

“The Ba2 rating assignment for the senior secured revolving credit facility reflects structural features that give any outstanding revolving credit facility draws a priority claim over the term loan during any bankruptcy reorganization or liquidation scenario,” Moody’s said in a press release.

The outlook is stable.

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