Moody’s gives B1 to Genesis Energy notes

Moody's Investors Service said it assigned a B1 rating to Genesis Energy LP's proposed $750 million senior notes.

Proceeds will be used in conjunction with about $450 million in proceeds from a simultaneous equity offering and drawings under its revolving credit facility to fund Genesis' $1.5 billion acquisition of Gulf of Mexico crude oil and natural gas gathering assets from Enterprise Products Operating, LLC (Baa1 stable).

Moody's affirmed all of Genesis' existing ratings, including its Ba3 corporate family rating.

The outlook is stable.

"The acquisition of the Enterprise Offshore Business will greatly enhance Genesis's scale and is a positive for the company's business profile," Moody's vice president James Wilkins said in a news release. "However, the company's leverage will likely remain high until the second half 2016."

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