S&P rates Arclight loan B+

S&P said it assigned a B+ issuer credit rating to AL NGPL Holdings LLC, a subsidiary of Arclight Capital Partners LLC. The outlook is stable.

At the same time, S&P assigned a B+ issue-level rating and 3 recovery rating to the company's new senior secured term loan B facility. The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

AL NGPL Holdings is issuing a $400 million seven-year term loan B due 2028. The company will use the proceeds to fund the acquisition of an interest in NGPL Holdings LLC, the parent company of NGPL Pipeco LLC.

“The stable outlook on AL NGPL reflects our forecast leverage ratio of about 8x and EBITDA interest coverage ratio of about 2x in 2021. We expect AL NGPL to receive steady distributions from NGPL Holdings sufficient to cover its debt service obligations and improve its credit metrics,” S&P said in a news release.

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