S&P: Western Gas notes BB+

Standard & Poor's said it assigned a BB+ senior unsecured debt rating to Western Gas Partners LP's proposed $520 million senior unsecured 10-year bullet notes.

The recovery rating on the notes is 3, indicating 50% to 70% expected recovery in a default.

Western Gas has also completed a concurrent equity offering of 5 million common units earlier this week.

The partnership will use proceeds from the unsecured note and common unit offerings to pay down roughly $334 million of the revolving credit facility borrowing and a $175 million issue of 2.82% notes due 2013 payable to parent Anadarko Petroleum Corp.

It will use any additional net proceeds for general partnership purposes, the company stated.

Adjusted debt leverage should range between 3.5x to 3.0x in 2012, S&P said, and liquidity should remain strong pro forma for the issuance.

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