Moody's upgrades EnVen notes to B3

Moody's Investors Service said it upgraded Talos Energy Ventures GOM LLC's (formerly Energy Ventures GoM LLC, or EnVen) senior secured second-lien notes due 2026 to B3 from Caa1.

Concurrently, Moody's withdrew EnVen's B3 corporate family rating and B3-PD probability of default rating. The agency also revised the outlook to stable from ratings on review for upgrade.

“The upgrade of EnVen's senior secured notes to B3 follows the completion of the acquisition by Talos Production Inc. (Talos, B2 stable) on Feb.13, 2023. The B3 notes rating is one notch below Talos' CFR and reflects the notes' second-lien claim on assets upon which Talos' RBL revolver (unrated) has a first lien. Talos' RBL revolver has $965 million in lender commitments. EnVen's approximately $258 million of senior secured second-lien notes due 2026 are rated the same as Talos' $650 million of senior secured second-lien notes due 2026 (both amounts reflect outstanding principal balances at the closing of the acquisition).

“In connection with the acquisition, Talos Production Inc. and its subsidiaries that are guarantors of the Talos notes became guarantors of EnVen's notes,” Moody’s said in a press release.

This concludes the review started on Sept. 22, 2022. Talos’ ratings, including its B2 CFR and B3 senior secured second-lien notes rating, and stable outlook remain unchanged.

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