Moody's ups, rates Traverse loan B2

Moody's Investors said it upgraded Traverse Midstream Partners LLC's corporate family rating to B2 from B3 and Moody's assigned a B2 rating to Traverse Midstream's planned $1.28 billion senior secured term loan B maturing in 2028.

The loan will be used to repay Traverse’s term loan, pay down borrowings under its super senior revolving credit facility, and cover transaction fees & expenses. "The proposed transaction refinances Traverse Midstream's entire debt load, substantially improving its debt maturity profile," said John Thieroff, senior credit officer, in a press release.

"Traverse Midstream will also benefit from the added liquidity achieved by terming out the borrowings under its fully drawn revolver. Though leverage remains high, the company's capital needs are limited and the cash flow generation from its equity stakes in two gas pipelines is highly consistent."

The outlook is stable.

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