S&P puts Exterran on positive watch

S&P said it placed all its ratings for Exterran Energy Solutions LP on CreditWatch with positive implications.

The CreditWatch placement follows the company's announcement that Enerflex Ltd., agreed to acquire Exterran Corp., the parent of Exterran Energy, in an all-stock deal. The companies anticipate the transaction closing in the second or third quarter of 2022 subject to customary closing conditions, including regulatory approvals.

Enerflex is expected to refinance Exterran’s debt via a committed $925 million bridge facility.

“The CreditWatch positive placement reflects the likelihood that Exterran's debt will be repaid upon the close of the transaction, assuming it is completed as proposed and there are no material changes to our current operating assumptions. Therefore, we expect to resolve the CreditWatch placement following the completion of the acquisition, which is expected in the second or third quarter of 2022,” S&P said in a press release.

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