Moody’s rates Oryx, loan B2

Moody's Investors Service said it assigned Oryx Southern Delaware Holdings, LLC a B2 corporate family rating, a B2-PD probability of default rating and a B2 senior secured term loan rating.

The outlook is stable.

Term loan proceeds will be used to fund a substantial distribution to the current owners and repay existing bank debt facility.

"Oryx's ratings are constrained by its small scale and the company's reliance on increased production from the acreage dedicated to Oryx in order to reduce high leverage to a sustainable level. The Oryx II system needs to be completed so Oryx has sufficient takeaway capacity to transport constrained and growing volumes," Moody's senior analyst Sreedhar Kona said in a news release.

"Oryx's ratings benefit from the location of the company's assets in the Delaware Basin and the projected volume growth from its acreage dedications."

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