S&P ups, rates Hilcorp notes BB+

S&P said it raised its ratings on Hilcorp Energy I LP and its senior unsecured notes to BB+ from BB and rated its planned $800 million of senior unsecured notes due 2030 and 2032 BB+ with a 3 recovery rating. The recovery rating on Hilcorp’s outstanding unsecured notes remains 3. Hilcorp Finance Co. will co-issue the notes.

“Continued debt paydown and an improved commodity price environment will lead to improved credit ratios. Hilcorp has paid down approximately $1.5 billion of the original BP acquisition associated financing, with the acquisition enhancing Hilcorp's portfolio of mature, long-lived assets with limited exploration needs,” S&P said in a press release.

Hilcorp will use the proceeds, borrowings from its reserve-based lending facility and cash on hand to pay the remainder of the term loan associated with BP.

The outlook is stable.

© 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.