S&P revises Epic Y-Grade view to negative

S&P said it revised the outlook for Epic Y-Grade Services LP to negative from stable.

Epic plans to issue a $150 million add-on to its $800 million senior secured first-lien term loan facility.

“The outlook revision is underpinned by the increased debt burden Epic has taken on to construct a second greenfield fractionator, before the NGL pipeline is fully operational and cash flows are realized. Epic intends to use the $150 million of proceeds from the $150 million add-on to the existing first-lien term loan facility to partially fund the buildout of a second greenfield 105,000 barrel per day (bbl/d) fractionator,” said S&P in a press release.

The agency affirmed its B ratings on Epic and its facility but lowered the recovery rating to 4 from 3 reflecting an expectation of average (30%-50%; rounded estimate: 45%) recovery in the event of default.

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