Fitch: Martin Midstream unchanged

Fitch Ratings said that Martin Midstream Partners, LP's long-term issuer default rating of B and negative outlook are unaffected by the pending dropdown of assets from its sponsor, Martin Resources Management Corp.

Martin Resources is dropping its Martin Transport Inc. business to Martin Midstream for $135 million, and there is a potential for $10 million earn-out.

Martin Midstream intends to finance the transaction with borrowings on its revolver, and it plans to close the transaction on Jan. 1, 2019.

Martin Midstream expects Martin Transport to generate EBITDA of about $24 million in 2019, reflecting a multiple in the range of about 5.6x to 6x, depending on whether or not the $10 million earn-out is paid.

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