Moody’s upgrades Franklin Energy

Moody's Investors Service said it upgraded KAMC Holdings, Inc.'s (Franklin Energy) corporate family rating to B3 from Caa1 and the company's probability of default rating to B3-PD from Caa1-PD.

Concurrently, Moody's affirmed Franklin Energy's backed senior secured first-lien term loan at B3 and assigned a B3 rating to the company's $35 million backed senior secured first-lien revolver, which was extended to expire February 2026.

The outlook is stable.

The agency said the upgrade reflects Franklin Energy's repayment of its $120 million second-lien term loan with proceeds from a preferred equity investment from funds managed by Invesco Senior Secured Management, Inc.

In addition to the positive credit implications of this debt repayment, the company's extension of its revolver bolsters Franklin Energy's liquidity profile, the agency said.

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