Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for SemGroup Corp. > News item |
Moody's rates SemGroup notes B3, ups loans
Moody's Investors Service said it assigned a B3 rating to SemGroup Corp.'s proposed $350 million senior unsecured notes due 2021.
Moody's also affirmed the B1 corporate family rating, upgraded the probability of default rating to B1-PD from B2-PD and upgraded the senior secured bank credit facility rating to Ba2 from B1.
The outlook is stable.
Proceeds from the proposed notes offering will be used to fund the $300 million acquisition of Chesapeake Energy Corp.'s Mississippi Lime Midstream assets and to repay borrowings under SemGroup's senior secured bank credit facility. The acquisition is expected to close by the third quarter of 2013, subject to market conditions.
SemGroup's B1 corporate family rating is supported by its improving business risk profile and the increasing proportion of fee-based cash flows within strong growth areas, the agency said. The rating is restrained by its small scale, large growth capital expenditures and evolving corporate structure associated with its MLP subsidiary, the agency added.
© 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.