S&P rates Genesis Energy notes B+

S&P said it gave Genesis Energy LP’s planned $550 million of senior unsecured notes due 2027. All its notes have 4 recovery ratings, reflecting expectations of average recovery in default.

Proceeds are expected to be used to repay about $390 million of unsecured notes due in 2023 and revolver borrowings. “The effective maturity extension is credit positive,” S&P said in a press release.

The agency also affirmed the B+ ratings on Genesis and its senior unsecured notes. S&P also revised the outlook to negative from stable.

“The negative outlook reflects our view that Genesis’ adjusted leverage will remain high in 2021 as the soda ash pricing improves over the course of the year. As a result, we expect debt-to-EBITDA leverage in 2020 of 7.3x, declining to approximately 6.4x in 2021,” S&P said in a press release.

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