Moody's assigns Matador notes B1

Moody's Ratings said it assigned a B1 rating to Matador Resources Co.'s planned senior unsecured notes due 2032.

The agency said it concurrently changed the company's outlook to positive from stable and affirmed its Ba3 corporate family rating, Ba3-PD probability of default rating and B1 rating on the senior unsecured notes. The SGL-2 speculative grade liquidity rating was unchanged.

The proceeds will be used to fund a tender offer that was launched concurrently for Matador's 5 7/8% notes due 2026, and general corporate purposes, including reducing borrowings on the unrated revolving credit facility.

"The positive outlook considers Matador's increased scale and recent deleveraging as well as our expectation of ongoing capital discipline and prudent financial management," commented Sajjad Alam, a Moody's vice president, in a press release. "This refinancing transaction in combination with the recently announced equity offering and amendments to its credit agreement will provide significant incremental financial flexibility."

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