S&P ups Murray Energy

S&P said it raised its corporate credit rating on Murray Energy Corp. to CCC+ from SD and placed all ratings on Murray on CreditWatch with positive implications.

The CCC+ issue-level rating on Murray's new $1.75 billion term loans, consisting of $1.58 billion B-2 and $168 million B-3 first-lien term loans due 2022, is unchanged. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of default.

The CCC- issue-level rating on the company's $498 million 1½-lien senior notes due 2024 is also unchanged. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of payment default.

S&P said it also raised the rating on the remaining $50 million term loans B2 and B3 and $326 million outstanding senior secured notes that did not participate in the exchange transaction to CCC- from D. The 6 recovery rating on this debt is unchanged, indicating an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of payment default.

“The upgrade on Murray follows the exchange completed on June 15, 2018. The company's new capital structure consists of new $1.75 billion term loans due 2022 and $498 million senior secured notes due 2024,” S&P said in a news release.

© 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.