Moody's gives Martin Midstream notes B3

Moody's Investors Service said it assigned a B3 rating to Martin Midstream Partners LP's proposed $150 million senior unsecured notes.

These notes will be an add-on to the company's existing $250 million 7¼% senior unsecured notes due 2021.

The proposed senior unsecured notes will be, along with the existing senior notes, structurally subordinated to the senior secured credit facility's significant priority claim on Martin Midstream's assets, Moody's said. Therefore they are rated two notches below the company's B1 corporate family rating given the agency's expectation that the company will continue to incur debt, primarily in the form of revolver borrowings.

The size of the potential senior secured claims relative to the unsecured notes results in a B3 rating for notes under Moody's Loss Given Default Methodology.

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