| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for TransMontaigne Partners LP > News item |
S&P lowers TransMontaigne
S&P said it lowered the rating on TransMontaigne Partners LP's senior unsecured notes to B+ from BB-.
The recovery rating of 5 is unchanged.
The downgrade reflects the impact of the merger transaction wherein TLP Finance Holdings LLC is issuing a $525 million credit facility to finance the acquisition of all the outstanding common units of TransMontaigne Partners.
Although the debt at TLP Finance will be structurally subordinated to debt at TransMontaigne, TLP Finance will be the 100% owner of TransMontaigne, S&P said.
TLP Finance will rely solely on distributions from TransMontaigne to pay debt service on its credit facility.
The stable outlook reflects an expectation that the company will experience low cash flow volatility and maintain an adjusted debt-to-EBITDA of about 4.5x over the medium term, S&P said, with leverage greater than 5.5x at the consolidated entity.
The agency also said it expects the company will continue to renew its contracts with creditworthy counterparties.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.