S&P: Regency outlook positive

Standard & Poor's said it revised its CreditWatch implications on Regency Energy Partners LP and Regency Gas Services LP to positive from developing after the company announced it will launch an offering of 10 million common units.

The ratings were originally placed on CreditWatch on June 19, following the company's announcement that that its former general partner owner, HM Capital Partners LLC, had sold its general partner and limited partner ownership interests to GE Energy Financial Services.

Affected ratings include Regency Gas's corporate credit rating at B+ and Regency Energy Partners's $550 million senior notes due 2013 at B+.

The company intends to use the net proceeds from the offering to redeem $192.5 million in principal amount, or 35%, of its $550 million senior notes due 2013, to repay in full its remaining term loan and to repay a portion of its revolving credit facility, the agency said.

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