Moody’s gives B1 to Rose Rock notes

Moody's Investors Service said it assigned a B1 rating to Rose Rock Midstream, LP's proposed offering of $300 million senior notes.

Net proceeds will be used to repay about $261 million of borrowings outstanding under the company's $585 million senior secured revolving credit facility due 2018 and for general corporate purposes.

All existing ratings, including the Ba3 corporate family rating, are unchanged and the outlook remains stable.

"Although, the new notes will modestly increase interest expense and reduce cash flow generation for Rose Rock Midstream, the repayment of outstanding borrowings under the revolving credit facility improves the company's liquidity," Moody's vice president Arvinder Saluja said in a news release.

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