Moody’s rates Hilcorp Energy notes Ba3

Moody’s Investors Service said it rated the $1 billion of senior unsecured notes to be sold by Hilcorp Energy I, LP and co-issuer Hilcorp Finance Co. Ba3.

The Ba2 corporate family rating, the Ba2-PD probability of default rating and stable outlook are not affected by this action, the agency said.

“The Ba3 rating on HEI’s senior unsecured notes reflects their subordinate position to the company’s $1.6 billion secured borrowing base revolving credit’s priority claim to the company’s assets. The size of the senior secured claims relative to HEI’s outstanding senior unsecured notes results in the notes being rated one notch below the Ba2 CFR,” Moody’s said in a press release.

Proceeds will be used to fund the partial redemption of Hilcorp Energy’s 2024 and 2025 unsecured notes and to repay borrowings under the revolving credit facility.

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