S&P rates Goodnight Water, loan B

S&P said it gave B ratings to Goodnight Water Solutions LLC and its planned $400 million senior secured term loan due 2027. The recovery rating on the notes is 3.

“Goodnight's operations benefit from geographic diversity, although it is relatively small as measured by EBITDA. The company's core exposures are in the Bakken and Permian basins, with complementary exposure in the Eagle Ford. The Permian and Bakken basins account for approximately 90% of revenues. Goodnight's multi-basin exposure provides protection against risk factors that could affect one basin more than the other. Although the operations benefit from geographic diversity, Goodnight is much smaller in size and scale than its higher-rated peers,” the agency said in a press release.

S&P also assigned a stable outlook, reflecting an forecast Goodnight will continue increasing its throughput volumes and EBITDA, while lowering its leverage to the low-to-mid-5x area in 2021 and improving to low 4x in 2022.

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