Moody's rates WhiteWater, loan Ba2

Moody's Investors Service said it assigned first-time ratings to Whitewater Whistler Holdings, LLC, including a Ba2 corporate family rating, a Ba2-PD probability of default rating and a Ba2 rating to its planned $500 million secured term loan B due 2030. The outlook is stable.

WhiteWater will use the loan along with $1.5 billion of equity contributions from a fund managed by I Squared Capital, including retained equity by the management team, to acquire a 62.5% interest in Whistler Pipeline, LLC.

“WhiteWater's Ba2 CFR is supported by its relatively predictable distributions from its majority ownership interest in Whistler. Whistler's credit profile is underpinned by the over 90% of take-or-pay contracts (minimum volume commitments, MVCs) on its pipeline system that transports natural gas from the highly prolific and low-cost Permian Basin to the demand centers connected to the U.S. Gulf Coast, LNG export centers, and Mexico. About 85% of Whistler's projected revenue will come from investment-grade shippers with an overall weighted average remaining contract life of over 10 years on the Whistler mainline and a weighted average counterparty credit rating of Baa1,” the agency said in a statement.

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