S&P might lift Sonneborn

S&P said it placed its ratings, including the B issuer credit rating, on Sonneborn Holdings LP on CreditWatch with positive implications.

The CreditWatch placement follows HollyFrontier's (BBB-/stable) announcement that it entered into an equity purchase agreement to acquire 100% of Sonneborn for cash consideration of $655 million, including working capital with an estimated value of $72 million.

“We expect to resolve the CreditWatch once we gain assurance that the transaction will close as expected. We would likely raise our ratings on Sonneborn to bring them in line with those of HollyFrontier,” S&P said in a news release.

“We would then withdraw our ratings on Sonneborn, assuming its debt is fully repaid.”

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