Moody's gives Hess Midstream loans Baa1

Moody's Investors Service said it assigned a Baa1 rating to Hess Midstream Operations LP's amended and extended bank credit facilities, including a senior secured first-lien $1 billion revolving credit facility expiring 2027, and a senior secured first-lien $400 million term loan due 2027. All the company's other ratings, including its Ba1 corporate family rating and the stable outlook were unchanged.

The company will use the proceeds to repay and terminate the company's term loan due December 2024. The new revolver will be partially drawn to repay borrowings on the prior revolving credit facility, which had a $105 million balance at March 31. Both outstanding loans are also rated Baa1.

"This transaction is leverage neutral, but the maturity extension will improve the company's refinancing risk profile," said Sajjad Alam, a Moody's vice president, in a press release. "The new amended and restated credit agreement has identical commitment amounts, guarantees, secured collateral and covenants as the existing credit agreement."

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