S&P: Tesoro unchanged following add-on

Standard & Poor's said the BB- rating and 4 recovery rating on Tesoro Logistics LP's and Tesoro Logistics Finance Corp.'s $350 million 5 7/8% senior unsecured notes due 2020 are unchanged after the partnership announced its proposal to issue a $250 million add-on to the notes.

The notes will total $600 million.

The recovery rating of 4 indicates 30% to 50% expected default recovery. The partnership intends to use net proceeds to repay $250 million outstanding under its revolving credit facility, which they used to partly fund the Dec. 6, $650 million acquisition of the Los Angeles logistics assets from Tesoro Refining & Marketing Co. LLC, a subsidiary of parent Tesoro Corp.

The corporate credit rating on Tesoro Logistics is BB- with a stable outlook.

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