Moody’s applies Ba1 to Buckeye notes

Moody's Investors Service said it assigned a Ba1 rating to Buckeye Partners, LP's proposed junior subordinated notes issue and affirmed its Baa3 senior unsecured rating.

Note proceeds, in addition to the net proceeds from the Nov. 9 $400 million senior note offering, are expected to be used primarily to repay debt, including the amounts outstanding under the partnership's revolver, and to fund acquisitions, capex and additions to working capital.

The outlook remains stable.

The new notes are rated one notch below Buckeye’s Baa3 senior unsecured rating. Moody’s said the notching reflects the subordinated position of the notes relative to the partnership's existing senior unsecured notes and revolving credit facility.

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