S&P gives B+ to Summit Midstream notes

S&P said it assigned its B+ issue-level rating and 4 recovery rating to Summit Midstream Holdings, LLC and Summit Midstream Finance Corp.'s proposed $500 million senior unsecured notes due 2025.

The 4 recovery rating indicates an expectation of average (30% to 50% range) recovery in the event of a payment default.

The notes are guaranteed on a senior unsecured basis by Summit Midstream Partners.

The company will use net proceeds to tender for the 2021 notes and repay a portion of the debt outstanding under the revolving credit facility, which it drew on to finance the dropdown acquisition from SMP Holdings in the first quarter of 2016.

Summit’s corporate credit rating is B+ and the outlook is stable.

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