Moody’s gives Summit Midstream CFR, loan B3

Moody's Investors Service said it assigned Summit Midstream Partners Holdings, LLC (SMP Holdings), an indirect parent of Summit Midstream Holdings, LLC (Summit, B1 stable), a B3 corporate family rating, B3-PD probability of default rating and a B3 rating on its proposed $300 million senior secured first-lien term loan.

The outlook is stable.

Net term loan proceeds will be used to repay roughly $102 million of 11% class C preferred units at Summit Midstream Partners, LLC, including any accrued and unpaid quarterly distributions associated with them, as well as to fund about $190 million of distributions to SMP Holdings' owners.

Moody’s said the B3 corporate family rating reflects its structural subordination to the debt at Summit, which was roughly $1.3 billion at Dec. 31, 2016 pro forma for the February 2017 bond offering, and SMP Holdings' standing as a pure-play general partner without any other assets.

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