S&P gives BB- to Genesis Energy notes

S&P said it assigned its BB- issue-level rating to Genesis Energy LP's proposed senior unsecured notes of $450 million. The recovery rating is 4, indicating an expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of default.

S&P said the rating on this proposed senior unsecured note offering is the same as S&P’s rating on the company's existing notes; these ratings have not changed.

Genesis intends to use the net proceeds to refinance its $350 million senior unsecured notes maturing in 2021.

“We expect the company to use the remaining proceeds to pay down its revolving credit facility, which it used earlier this year to partially fund the recent acquisition of Tronox Alkali Corp., one of the world's largest producers of soda ash,” S&P said in a news release.

“We believe the proposed offering should not affect the company's net leverage given the plan to refinance.”

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