Fitch gives BB to Regency Energy notes

Fitch Ratings said it assigned a BB rating to Regency Energy Partners LP’s proposed $500 million senior unsecured notes offering due 2022.

Proceeds will be used to repay borrowings outstanding under Regency Energy’s revolving credit facility and for general partnership purposes.

The outlook is stable.

Regency Energy recently completed several significant acquisitions including PVR Partners, LP, Eagle Rock Midstream assets and Hoover Energy Partners, LP. As a result, Fitch expects Regency Energy’s leverage to be high for 2014 (above 5.0 times) as it completes and integrates these acquisitions.

The agency said it expects metrics to improve back to between 4.5 times and 5.0 times in 2015, further improving as earnings and cash flow from acquisitions and growth projects start to be fully realized on an annual basis.

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