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Prospect News home > News index > List of issuers H > Headlines for Hunt Oil Co. of Peru > News item |
Fitch to give Hunt Oil notes BBB
Fitch Ratings said it expects to assign a BBB(EXP) long-term rating to Hunt Oil Co. of Peru's proposed $600 million senior unsecured notes due 2028.
The issuance will be used to refinance existing project finance debt, which totaled $355 million as of year-end 2017. Roughly $90 million will be used to pay a term loan and the balance of $155 million to pay an intercompany loan to parent company, Hunt Overseas Oil Co.
Fitch said the proposed senior unsecured notes will benefit from distribution tests that could retain cash flow at a trust structure to protect operational expenditures, capital expenditures, royalties, insurance and debt service payments.
The ratings reflect the company's strong cash flow generation and solid capital structure supported by ample reserves, steady production and low capex requirements to maintain the reserve life of blocks 88 and 56, the agency explained.
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