Moody's rates Colgate Energy notes B3

Moody's Investors Service said it assigned first-time ratings to Colgate Energy Partners III, LLC, including a B2 corporate family rating, B2-PD probability of default rating and B3 rating to the proposed $300 million senior notes due 2028.

The outlook is stable.

Colgate will use net proceeds from the notes offering to repay most of its revolver borrowings outstanding and to fund a distribution to shareholders. The transaction is expected to close in late January.

“Colgate Energy has a short operating and financial history but is well positioned to grow production and reserves while maintaining low financial leverage and good liquidity,” commented Jonathan Teitel, a Moody's analyst, in a news release.

© 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.