S&P rates EPIC Y-Grade, loan B

S&P said it assigned its B corporate credit rating to EPIC Y-Grade Services LP.

The outlook is stable.

The agency also assigned its B issue-level rating to the $650 million senior secured term loan due 2025. The 3 recovery rating indicates that lenders can expect meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

S&P said it expects the partnership to use net proceeds from the offering, along with about $810 million of equity, to partially finance the build-out of a y-grade natural gas liquids pipeline to Corpus Christi, Texas, fund a six-month interest reserve and cash collateralize a letter of credit with BP Energy Corp.

S&P said the rating on EPIC Y-Grade reflects an assessment of a vulnerable business risk profile and highly leveraged financial risk profile.

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