Moody’s: CrownRock unaffected by tack-on notes

Moody's Investors Service said that CrownRock, LP's (CrownRock) proposed $150 million senior unsecured notes offering due 2025 (the tack-on notes) will not affect the company's credit ratings or stable outlook.

The tack-on notes are being offered as an addition to CrownRock's $1 billion 5 5/8% senior unsecured notes due 2025 that the company initially issued in October 2017.

Proceeds will be used to pre-fund a portion of 2018 capital spending.

Moody’s said the senior notes rated B3 are unsecured and therefore subordinated to the senior secured credit facility's priority claim to the company's assets.

The size of the potential senior secured claim relative to the unsecured notes outstanding results in the senior notes being rated one notch below the B2 corporate family rating under Moody's Loss Given Default Methodology.

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