S&P: Quicksilver unaffected

Standard & Poor's said its ratings and outlook on Quicksilver Resources Inc. (B+/stable) are not affected by the company's plan to sell all of its interest (approximately 61%) in its midstream master limited partnership, Quicksilver Gas Services LP.

The total transaction value is approximately $1 billion, of which Quicksilver will receive approximately $701 million in pretax cash proceeds. The agency expects the company to use the proceeds to reduce debt by repaying current revolver outstandings of $528 million and that the remainder will be held as cash.

Although Quicksilver's credit metrics and liquidity will improve following the sale, the company's pro forma financial profile still remains highly leveraged, S&P said. The agency expects the pro forma debt-to-EBITDA ratio to be about 3.5 times, compared with prior expectations of about 4.5 times.

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