Moody’s rates Moda Ingleside loans B1

Moody's Investors Service said it assigned ratings to Moda Ingleside Energy Center, LLC, including a B1 corporate family rating and a B1-PD probability of default rating.

The agency also assigned B1 ratings to the company’s proposed $300 million senior secured term loan B due 2025, $45 million senior secured revolving credit facility due 2023 and $180 million delayed-draw term loan A due 2023.

The outlook is stable.

The proceeds from the term loan issuance, along with equity contribution from its private equity sponsor, EnCap Flatrock Midstream, will fund the recently agreed acquisition of the Ingleside Energy Center crude oil and LPG storage and export terminal, associated infrastructure, and some crude oil pipeline assets from Occidental Petroleum Corp. (A3 stable).

“Moda benefits from favorable counter-party contracts for its terminal business, low risk of terminal capacity expansion, and emerging opportunity to export Permian crude from the Gulf Coast,” Arvinder Saluja, Moody's vice president, said in a news release.

“Sizable equity funding for the acquisition and further equity from EFM boost Moda's financial capacity to support the future growth needed to organically reduce leverage over the next two years.”

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