Moody’s gives B3 to Rex Energy notes

Moody's Investors Service said it assigned a B3 rating on Rex Energy Corp.’s proposed $250 million senior unsecured notes due 2022.

The outlook is stable.

Net proceeds will be used to repay all of the borrowings outstanding under the company's revolving credit facility and for general corporate purposes.

"Moody's views this transaction as a straight refinancing of debt," Moody's vice president and senior analyst Michael Somogyi said in a news release. "By returning to full borrowing capacity under the company's revolver and adding cash to the balance sheet, REXX will enhance its liquidity position to further support its development program."

The B3 rating on the company's proposed $250 million senior unsecured notes reflect their subordinate position relative to the Rex's senior secured revolver, the agency said. Rex also has $350 million of senior unsecured notes due 2020.

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