Moody's rates Talos notes Caa1

Moody's Investors Service said it assigned a B3 corporate family rating to Talos Production LLC and a Caa1 rating to its proposed $300 million senior unsecured notes issue due 2018, which is being co-issued by Talos Production Finance Inc.

The outlook is stable.

Moody's said the Caa1 ratings on the proposed $300 million senior unsecured notes reflect both Talos' overall B3-PD probability of default and a loss given default of LGD5-73%.

The size of the senior secured revolver's priority claim relative to the senior unsecured notes results in the notes being rated one notch beneath the B3 corporate family rating under Moody's Loss Given Default Methodology, the agency added.

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