Moody's: Comstock notes B2

Moody's Investors Service said it assigned a B2 rating to Comstock Resources, Inc.'s proposed $250 million senior unsecured notes due 2017.

The proceeds will be used to fund a tender offer for the company's existing senior unsecured notes due 2012 and repay all outstanding revolving credit facility borrowings.

The LGD point estimate on Comstock's existing senior unsecured notes was changed to LGD 5, 73% from LGD 5,75%, Moody's said.

The outlook is stable.

The transaction enhances Comstock's liquidity with increased revolver availability, larger cash balance and no debt maturities until 2015, Moody's said.

Leverage on production and reserves would increase only slightly, the agency said, and this increase has the potential to be moderated by increased production and reserves.

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