Moody’s rates Laredo notes B3

Moody’s Investors Service said it assigned a B3 rating to Laredo Petroleum, Inc.’s proposed offering of notes, including $450 million senior unsecured notes due 2025 and $450 million senior unsecured notes due 2028. Laredo’s ratings, including its B1 corporate family rating, B1-PD probability of default rating, B3 senior unsecured notes rating and SGL-2 speculative grade liquidity rating are unchanged. The outlook is stable.

The proceeds will be largely used to fund tenders or redemptions of the outstanding notes due 2022 and 2023.

“The proposed notes issuance is opportunistically refinancing existing debt while extending maturities and improving financial flexibility,” said Amol Joshi, a Moody’s vice president and senior credit officer, in a press release.

The unsecured notes are rated two notches below Laredo’s B1 CFR, mirroring the priority claim of the relatively large borrowing base senior secured credit facility that has a first lien on most of Laredo’s assets, Moody’s said.

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