Moody's rates Sheridan loan B1

Moody's Investors Service said it assigned a B1 rating to the new $800 million senior secured term loan which will be split amongst Sheridan Investment Partners I, LLC, Sheridan Production Partners I-A, LP, and Sheridan Production Partners I-M, LP.

The term loans are pari-passu with the partnerships' revolving credit facilities and the proceeds will be used to repay Sheridan's existing $584 million term loans and to reduce borrowings under its revolving credit facilities.

Sheridan's existing ratings and outlooks are unchanged.

"The possibility of a new $800 million term loan was incorporated into our thinking in May 2012 when we upgraded Sheridan's CFR to B1 from B2," said Stuart Miller, Moody's vice president - senior credit officer.

"Moody's continues to believe that Sheridan's long-life reserve position, its high cash margins, and the protection afforded by the credit facility's borrowing base mechanism support a B1 senior secured rating despite limited growth opportunities for the partnership."

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