Moody's gives Tallgrass notes B1

Moody's Investors Service said it gave a B1 rating to Tallgrass Energy Partners, LP's (TEP) planned $500 million of senior unsecured notes due 2031. TEP is a wholly owned subsidiary of Prairie through which Prairie conducts its operations All other ratings of TEP and its parent company, Prairie ECI Acquiror LP are unchanged, including Prairie's B1 corporate family rating.

“TEP's senior unsecured notes (including the proposed notes) are rated B1, the same as Prairie's B1 CFR. Although the notes are subordinated to TEP's $1.5 billion senior secured revolving credit facility (unrated) maturing in July 2025, which has a senior secured priority claim to TEP's assets, the notes are in a structurally superior position within the capital structure and have a priority claim to the assets compared to Prairie's $1.5 billion senior secured term loan,” Moody’s said in a press release.

The company intends to use the proceeds to redeem its 2024 notes outstanding and partially repay revolver borrowings.

“Moody's views this transaction as credit neutral as the overall debt burden of Prairie remains mostly unchanged and the nearest term maturity is being refinanced,” the agency said in a press release.

The stable outlook is also unchanged.

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