S&P rates Regency Gas Services loan B+

Standard & Poor's said it affirmed its B+ corporate credit rating on Regency Gas Services LP following the company's announcement that it will acquire TexStar Field Services LP from affiliates of HM Capital Partners LLC for about $350 million.

At the same time, S&P said it assigned its B+ rating with a recovery rating of 3 to the company's proposed $250 million senior secured revolving credit facility and $600 million senior secured term loan B.

The outlook has been revised to negative from stable.

According to the agency, the Regency ratings reflect a weak business risk profile, which includes a brief operating history, a commodity-price-sensitive contract mix, a small asset base compared with those of its peers and a challenging competitive position.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.