S&P: Endeavor Energy unchanged after add-on

Standard & Poor's said the B+ rating and 4 recovery rating on Endeavor Energy Resources LP's senior unsecured notes due 2021 are unchanged following the company's proposed $100 million add-on.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The agency noted that if Endeavor increases the add-on amount by more than $25 million, the rating would be lowered to B, reflecting that unsecured debt would decline 10% to 30%, consistent with a recovery rating of 5.

The ratings consider the company's modest, proven reserve base and substantial acreage position concentrated in the Permian Basin of West Texas and a relatively high cost structure, S&P said.

The ratings also incorporate the company's capital spending, which is expected to exceed cash flow by a modest amount, as well as its moderate leverage, the agency said.

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