Moody’s rates EPIC Y-Grade facilities Ba3, B3

Moody's Investors Service said it assigned EPIC Y-Grade Services, LP a B3 corporate family rating, a B3-PD probability of default rating, a Ba3 rating to its senior secured revolving credit facility and a B3 senior secured term loan rating.

The outlook is stable.

EPIC is developing a project to construct a 700-mile natural gas liquids (NGL) pipeline linking the Permian producing region to Gulf Coast petrochemical companies. The company expects to complete the NGL pipeline and two fractionation plants and is in the process of obtaining environmental permits and right of way (ROW) authorizations to build out the project.

EPIC expects to complete the first phase of the project by the end of 2019. This will include the initial capacity of the NGL pipeline at 440KBoed and 100Kboed of fractionation capacity on the first fractionator, Moody’s explained.

The second phase of the project will see EPIC constructing the second fractionation plant with additional 100 kboed capacity expected to come on stream in 2020.

"EPICs ratings reflect high execution risks during the construction period in 2018- 2019, mitigated in part by the sizable up front equity commitment by the sponsors and strong management track record, as well as initial off-take commitments," Moody's senior analyst Elena Nadtotchi said in a news release.

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