Moody's: WildHorse loan B3

Moody's Investors Service said it assigned a B2 corporate family rating to WildHorse Resources, LLC and a B3 rating to the proposed $325 million second-lien senior secured term loan facility due 2019.

The outlook is stable.

Moody's also assigned a SGL-3 speculative grade liquidity rating to WildHorse.

Facilities proceeds will be used to pay a special dividend to the company's owners and to reduce borrowings under its first-lien revolving credit facility.

"WildHorse Resources is a relatively small E&P company in the early stages of a horizontal drilling strategy concentrated in North Louisiana gas and liquids reserves. The special dividend under direction of its private equity owners is a highly leveraging transaction, but we believe the company's efficient cost structure and prospects for a rising cash flow profile help mitigate its financial leverage and asset concentration risk," Moody's senior vice president Tom Coleman said in a news release.

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