S&P trims Glass Mountain Pipeline

S&P said it lowered its issue-level rating to B- from B and maintained the 3 recovery rating on Glass Mountain Pipeline Holdings LLC's upsized $425 million senior secured term loan B facility.

At the same time, the agency lowered its issuer credit rating on Glass Mountain Pipeline LLC to B- from B.

The outlook is now stable.

Glass Mountain issued a $129 million add-on to its existing term loan B due 2024. The holding company will use proceeds from the issuance along with a committed equity contribution from the financial sponsor to fund the southern extension of its crude oil pipeline system.

“The downgrade of the company to B- from B reflects our expectation that Glass Mountain will maintain a debt-to-EBITDA ratio of above 9x in 2019 following the issuance of $129 million add-on to the $296 million outstanding term loan B,” the agency said in a news release.

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