Moody's assigns Helix notes B3

Moody's Investors Service said it is assigning a B3 (LGD4, 68%) rating to Helix Energy Solutions Group, Inc.'s proposed $500 million of fixed- and floating-rate senior unsecured notes.

Simultaneously, Moody's said it upgraded Helix's existing term loan B and senior secured revolving credit facility ratings to Ba2 (LGD 2, 20%) from B1 (LGD 3, 37%) and affirmed the company's B2 corporate family rating and B2 probability of default rating.

Moody's said it is also assigning a speculative-grade liquidity rating of SGL-3.

The outlook is changed to positive from stable.

The agency said that proceeds from the notes will pay down the existing term loan leaving $424 million outstanding under the term loan.

The positive outlook reflects the company's forward momentum in the exploration and production business acquired from Remington in 2006 as well as the favorable fundamentals of the services business, which should provide cash to support the E&P business if needed and the plans to monetize non-core assets that could generate significant cash to repay debt, the agency noted.

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