Moody's rates Oryx Midstream loan Ba3

Moody's Investors Service said it assigned first-time ratings to Oryx Midstream Services Permian Basin LLC, including a Ba3 corporate family rating, a Ba3 rating to its proposed $1.5 billion senior secured term loan maturing in 2028, and a Ba1 rating to its proposed $50 million super priority revolver expiring in 2026.

The outlook is stable.

Oryx Midstream, a newly formed subsidiary of sponsor Stonepeak Partners LP (Stonepeak, unrated), is issuing the credit facilities backed by its 35% equity interest in Plains Oryx Permian Basin LLC, a joint venture between Plains All American Pipeline, LP (Ba1 under review for upgrade) and Oryx Midstream Holdings LLC (B2 stable).

“Oryx Midstream's Ba3 rating reflects its complete reliance on distributions from the Permian basin JV between Plains and Oryx to cover its debt-service obligations,” said Arvinder Saluja, Moody's vice president, in a news release.

“The rating is supported by the JV's significant position in the Permian, Oryx Midstream's meaningful ownership stake in the JV and strong contractual rights to participate in key strategic, financial policy and capital structure decisions.”

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