Moody's rates Energy Transfer loans Ba2

Moody's Investors Service said it assigned Ba1 corporate family and probability-of-default ratings to Energy Transfer Equity, LP and a Ba2 rating with a loss-given-default assessment of LGD5 (88%) to the company's senior secured credit facilities, which include an existing $500 million revolving credit facility, an existing $150 million term loan A and a proposed $1.3 billion term loan B.

The outlook is stable.

Proceeds from borrowings under the proposed term loan B will be used to purchase additional Energy Transfer Partners limited partner units.

The agency said the ratings reflects the combined credit strength and leverage of Energy Transfer Equity and Energy Transfer Partners and said it is useful to view both entities together because all debt ultimately is supported by cash flow generated at Energy Transfer Partners.

Pro forma for contemplated transactions, total group debt will be $4.5 billion, and debt to EBITDA will be about 4.6x. Moody's said it expects the total group leverage to decline to around 4.25x by the end fiscal 2007, reflecting growth in EBITDA over the period as well as expected financing needs related to Energy Transfer Partners' expansion projects.

© 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.