S&P gives Summit notes B-

S&P said it assigned its B- issue-level and 5 recovery ratings to Summit Midstream Holdings LLC and Summit Midstream Finance Corp.'s planned about $210 million of senior unsecured notes due 2026. The 5 recovery rating indicates modest (10%-30%; rounded estimate: 10%) recovery in default.

The partnership plans to issue a total of $209.5 million of new senior unsecured notes due 2026 with a 12% coupon in exchange for $180 million of outstanding 2025 unsecured notes also rated B- with a 5 recovery rating, and $29.5 million in cash.

“We believe the partnership will have sufficient liquidity to repay the approximately $50 million outstanding on its 2025 notes when due. In our view, the existing investors are receiving adequate compensation for the longer tenor given the higher coupon relative to the existing notes,” S&P said in a press release.

The outlook is stable.

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