Fitch gives Medallion Midland BB-, loan BB+

Fitch Ratings said it assigned Medallion Midland Acquisition, LLC and its operating subsidiary Medallion Gathering & Processing, LLC an initial long-term issuer default rating of BB-.

The agency also assigned a BB+/RR1 rating to Medallion Midland’s proposed $700 million senior secured term loan.

Fitch said the ratings reflect expectations for continued volume growth across Medallion's producer customer base within its dedicated acreage over the next several years, and that as a result of this growth, Medallion's debt/EBITDA will rapidly improve from roughly 5.2x-5.75x at year end 2018 to 4.0x-4.2x and potentially below by the end of 2019.

The rapid deleveraging will be achieved by both growth in production volumes across Medallion's system, as well as mandatory amortization and a cash sweep expected to be placed on the term loan.

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