Bulletin: Genesis Energy's Acquisition Of Nova Energy's LPG Distribution Business Has No Rating Impact

SYDNEY (S&P Global Ratings) May 1, 2017--S&P Global Ratings said today that its issuer credit rating on Genesis Energy Ltd. (Genesis Energy, BBB+/Stable/--) is not immediately affected by the company's acquisition of Nova Energy's liquefied petroleum gas (LPG) distribution business for NZ$192 million (plus an option to acquire Nova Energy's interest in Liquigas for NZ$15 million). This is because of the New Zealand-based company's announcement to imminently issue up to NZ$225 million of capital bonds to finance the acquisition. Should these bonds have similar terms and conditions compared with the company's existing capital bonds, our treatment for these bonds in our ratio calculations will be similar to our approach for the existing capital bonds. While there is no immediate impact

...SYDNEY (S&P Global Ratings) May 1, 2017--S&P Global Ratings said today that its issuer credit rating on Genesis Energy Ltd. (Genesis Energy, ###+/Stable/--) is not immediately affected by the company's acquisition of Nova Energy's liquefied petroleum gas (LPG) distribution business for NZ$192 million (plus an option to acquire Nova Energy's interest in Liquigas for NZ$15 million). This is because of the New Zealand-based company's announcement to imminently issue up to NZ$225 million of capital bonds to finance the acquisition. Should these bonds have similar terms and conditions compared with the company's existing capital bonds, our treatment for these bonds in our ratio calculations will be similar to our approach for the existing capital bonds. While there is no immediate impact on the ratings, the final amount of capital bonds that Genesis Energy raises will determine the future trend in the financial metrics and rating headroom. Our base case assumes Genesis Energy will raise the...

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