S&P rates WEG Acquisition loan BB+

Standard & Poor's assigned a BB+ rating to WEG Acquisitions LP's proposed $200 million senior secured term loan due 2008. The outlook is stable.

WEG Acquisitions is an entity formed by Madison Dearborn Partners LLC and Carlyle/Riverstone Global Energy and Power Fund to acquire certain interests in Williams Energy Partners LP.

WEG operates the 6,700-mile Williams Pipe Line system, five marine terminals, 23 inland terminals and an ammonia pipeline. The company's assets generate relatively stable, consistent free cash flow and offer modest organic growth opportunities, S&P noted.

As a master limited partnership, WEG is required to distribute essentially all remaining cash after meeting debt service and maintenance capital requirements. Over the intermediate term, S&P expects that EBITDA interest coverage will fall between 3.5x to 4x. Total debt to EBITDA is expected to remain below 4x. In addition, WEG is expected to finance its future growth initiatives in a conservative manner.

© 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.