Moody’s rates Antero Resources notes B3

Moody’s Investors Service said it assigned a B3 rating to Antero Resources Corp.’s proposed $500 million of senior unsecured notes due 2026. Antero’s other ratings and stable outlook are unchanged.

“The proposed unsecured notes will rank equally in right of payment with Antero’s existing senior unsecured notes and hence were assigned the same B3 rating. Antero’s senior unsecured notes are rated B3, below the B2 corporate family rating (CFR) because of the significant size of the secured credit facility, which has a first-lien priority claim to substantially all of Antero’s assets. The unsecured notes have upstream guarantees from substantially all of Antero’s E&P subsidiaries that also guarantee the secured revolving credit facility,” Moody’s said in a press release.

Proceeds will be used to redeem a portion of the 2022 notes and reduce revolver borrowings.

The proceeds combined with a modest amount of free cash generation in 2021 will enable Antero to further de-lever and improve its maturity profile, the agency said.

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