S&P rates Harvest Midstream notes BB-

S&P said it affirmed the BB- issuer credit rating on Harvest Midstream I LP and assigned a BB- issue-level rating to its proposed senior notes with a recovery rating of 3. The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a default.

The outlook is stable.

Harvest Midstream I intends to issue $500 million senior notes due 2032 to repay a portion of its existing term loan A and revolving credit facility. Concurrently, Harvest will upsize its revolver to $850 million from $700 million.

At close, Harvest will have about $745 million of availability on its revolver and approximately $100 million term loan A outstanding.

“The stable outlook reflects our expectation that Harvest will maintain stable volumes across its systems. We also expect its S&P Global Ratings-adjusted debt-to-EBITDA will remain in the 3.75x-4.00x range in 2024,” S&P said in a news release.

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