S&P lowers TortoiseEcofin

S&P said it downgraded its ratings on TortoiseEcofin Parent Holdco LLC to SD, selective default, from CCC and its senior secured notes to D from CCC-.

The company exchanged its $300 million term loan due January 2025 for a new $60 million term loan due October 2028 and $190 million of perpetual convertible preferred equity, which has an 8% yield.

“We view the transaction as tantamount to a default because we believe lenders received less value than what was originally promised. Specifically, we believe the new term loan and preferred equity are not adequate compensation for the previous term loan, given Tortoise's capital structure was unsustainable over the long term because of the company's limited options to reduce its debt burden,” S&P said in a press release.

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