Moody's: Clayton Williams view to positive

Moody's Investors Service said it changed Clayton Williams Energy, Inc.'s outlook to positive from negative.

Moody's also said it assigned a Caa1 rating to its proposed $300 million senior unsecured notes and affirmed the company's B3 corporate family rating and SGL-3 speculative-grade liquidity rating.

The proceeds will be used to fund a tender offer for the company's existing $225 million senior unsecured notes due 2013 and repay revolver drawings.

The positive outlook reflects the favorable oil price outlook, the company's shift to a lower risk development strategy and assumes that the company is able to continue to grow production and reserves relative to expected increased debt levels, the agency said.

The ratings could be upgraded if the company is successful in continuing to grow production and reserves at competitive costs while maintaining sufficiently conservative financial leverage, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.