Moody's rates Energy Transfer notes, loan Ba2

Moody's Investors Service said it affirmed the Ba1 corporate family and probability-of-default ratings of Energy Transfer Equity, LP, and assigned a rating of Ba2 (LGD6, 92%) to its proposed $1.75 billion senior note offering and to its new $200 million revolving credit facility.

The agency affirmed the Ba2 (LGD6, 92%) ratings on Energy Transfer's $500 million guaranteed senior secured revolving credit facility and $1.45 billion senior secured term loan B facility.

The outlook is stable.

Proceeds will be used to pay off all outstanding debt under its $500 million revolving credit facility and its term loan B facility, and also will be applied to swap breakage costs and other fees.

Moody's said the affirmation and newly assigned ratings reflect the transaction's relatively neutral leverage impact and the company's enhanced liquidity profile.

The company is expected to have a standalone debt-to-EBITDA ratio of 2.7x. Total debt-to-EBITDA ratio for the Energy Transfer consolidated entity will be about 5.5x.

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