Moody’s rates Epic Y loan B3

Moody’s Ratings said it assigned a B3 rating to EPIC Y-Grade Services, LP's planned $1.075 billion backed senior secured first-lien term loan B due 2029 and a Ba3 rating to EPIC Y-Grade's proposed $70 million backed super-priority senior secured revolving credit facility due 2029.

EPIC Y-Grade's other ratings, including the B3 corporate family rating and B3-PD probability of default rating and stable outlook are unchanged. Moody's said it will withdraw the B3 rating for EPIC Y-Grade's first-lien term loan B due 2027 and Ba3 rating for its existing backed super-priority revolver due 2027 upon their full repayment with transaction proceeds.

“As part of the transaction, EPIC Propane Pipeline Holdings, LP (EPIC Propane, unrated), which has common ownership with EPIC Y-Grade, will become a subsidiary of EPIC Y-Grade and a guarantor of the proposed credit facilities. A portion of the proceeds from the proposed term loan will be used to repay EPIC Propane's $77 million term loan,” Moody’s said in a press release.

The new term loan and cash from EPIC Propane's and EPIC Y-Grade's balance sheets will be used to refinance EPIC Y-Grade's about $987 million outstanding term loans.

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