S&P rates Athlon notes CCC+

Standard & Poor's said it assigned a CCC+ rating and 6 recovery rating to Athlon Holdings LP's proposed $500 million unsecured notes due 2022.

The 6 recovery rating on this debt indicates 0% to 10% expected default recovery.

The B corporate credit rating and positive outlook are unchanged.

The proceeds, along with equity, will be used to fund an acquisition, S&P said.

Athlon is acquiring producing properties in the Permian Basin for $873 million in cash, adding about 25% to its year-end 2013 proven reserve base and current production levels, the agency said.

Although Athlon's credit protection measures weaken slightly following the proposed acquisition and debt issuance, they remain appropriate for the rating category with its funds from operations-to-debt in the 30% to 45% range, S&P said.

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