Andeavor Logistics L.P. And Subsidiary Ratings Placed On CreditWatch Positive On Acquisition

U.S. midstream energy partnership Andeavor Logistics L.P. (ANDX) has announced it will acquire Western Refining Logistics L.P. (WNRL) in an all-equity transaction for about $1.8 billion, including Western Refining Logistics' outstanding debt. The transaction also includes 78 million common units issued to parent Andeavor in exchange for the cancellation of the partnership's incentive distribution rights for a value of about $3.9 billion and a $60 million increase in distribution waivers by Andeavor for the period 2017-2019 to $160 million. We are placing our ratings, including our 'BB+' corporate credit rating and senior unsecured issue-level rating, on Andeavor Logistics and its operating subsidiary, Tesoro Logistics Finance Corp., on CreditWatch with positive implications. We will look to resolve the CreditWatch listing sometime

...+ U.S. midstream energy partnership Andeavor Logistics L.P. (ANDX) has announced it will acquire Western Refining Logistics L.P. (WNRL) in an all-equity transaction for about $1.8 billion, including Western Refining Logistics' outstanding debt. + The transaction also includes 78 million common units issued to parent Andeavor in exchange for the cancellation of the partnership's incentive distribution rights for a value of about $3.9 billion and a $60 million increase in distribution waivers by Andeavor for the period 2017-2019 to $160 million. + We are placing our ratings, including our '##+' corporate credit rating and senior unsecured issue-level rating, on Andeavor Logistics and its operating subsidiary, Tesoro Logistics Finance Corp., on CreditWatch with positive implications. + We will look to resolve the CreditWatch listing sometime in the fourth quarter of 2017, when the transaction closes. At that time, we expect to raise the rating one notch to '###-'. NEW YORK (S&P Global Ratings)...

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