Moody's: Memorial Production notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Memorial Production Partners LP's proposed offering of $100 million of senior unsecured notes due 2021 (an add-on to the $300 million senior unsecured notes issued in April 2013).

Proceeds from the new notes will be used to repay a portion of the outstanding borrowings under the partnership's senior secured revolving credit facility and for general partnership purposes.

The B2 corporate family rating and other ratings are unaffected.

The outlook is stable.

"The add-on notes essentially term out Memorial's borrowings and increase liquidity," Moody's vice president and senior analyst Saulat Sultan said in a news release. "However, we expect the partnership to use the incremental borrowing capacity to help fund future acquisitions via dropdowns or from third parties."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.