Moody’s rates Gopher, facilities B2

Moody's Investors Service said it assigned ECP Gopher Holdings, LP (Gopher Resource LLC) a B2 corporate family rating and B2-PD probability of default rating.

At the same time, the agency assigned B2 ratings to Gopher Resource's proposed first-lien senior secured revolving credit facility and proposed first-lien senior secured term loan.

The outlook is stable.

The assignments follow the company's plan to raise $490 million of new senior secured debt – a $40 million first-lien revolving credit facility and a $450 million first-lien term loan – to help fund the recent leveraged buyout by private equity sponsor Energy Capital Partners.

Moody’s said the B2 corporate family rating reflects Gopher Resource's small scale (revenues below $400 million), significant customer concentration, limited product diversity and heavy reliance on only two recycling facilities, making it vulnerable to potential disruption or operating inefficiencies.

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