Moody’s: Southcross Energy loan B1, Holdings loan B2

Moody's Investors Service said it assigned a B1 rating to Southcross Energy Partners, LP's proposed $450 million senior secured term loan.

The agency also assigned a B1 corporate family rating, a B1-PD probability of default rating and a SGL-3 speculative grade liquidity rating to Southcross.

The outlook is stable.

Term loan proceeds will be used in combination with new equity to repay outstanding borrowings under the company's revolving credit facility and to fund a dropdown of midstream assets from its parent.

In a related action, Moody's assigned a B2 rating to Southcross Holdings Borrower LP's proposed $525 million senior secured second-lien term loan B.

The agency also assigned a B2 corporate family rating, a B2-PD probability of default rating and a SGL-3 speculative grade liquidity rating. The outlook is stable.

Term loan proceeds at Holdings will be used in combination with cash proceeds from asset dropdowns and anticipated new Holdings equity to repay debt and preferred stock outstanding at the predecessor entities.

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