S&P assigns Hess Midstream notes BB+

S&P said it assigned BB+ issue-level and 3 recovery ratings to Hess Midstream Operations LP's planned $750 million of senior unsecured notes. The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“Our BB+ issuer credit rating on HESM is unchanged,” S&P said in a press release.

The partnership plans to use the proceeds to repurchase about $750 million of class B units from its two sponsors, Hess Corp. and Global Infrastructure Partners. The purchase price per class B unit is $24, which represents an about 4% discount to the 30-day volume-weighted average trading price of Hess Midstream LP's class A shares through Tuesday.

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