S&P ups TortoiseEcofin, pulls ratings

S&P said it raised its issuer rating for TortoiseEcofin Parent Holdco LLC to CCC+ from SD, selective default, and withdrew its ratings.

TortoiseEcofin exchanged about $300 million of its term loan due January 2025, for a $60 million term loan due October 2028, and $190 million of perpetual convertible preferred equity, which will convert to common equity. The agency said it considers the exchange the equivalent of default.

“We expect the transaction to offer TortoiseEcofin more financial flexibility by reducing the term loan balance. However, we view the majority of the new preferred equity as debt in our leverage calculation because we limit equity treatment of hybrids to a maximum of 15% of total capital, and TortoiseEcofin's reported book equity is currently negative,” S&P said in a press release.

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