Hilcorp Energy I L.P.'s Proposed $500 Million Senior Unsecured Notes Due 2033 Rated 'BB+' (Recovery Rating: '3')

NEW YORK (S&P Global Ratings) Nov. 3, 2023--S&P Global Ratings today assigned its 'BB+' issue-level rating and '3' recovery rating to U.S.-based privately held oil and gas exploration company Hilcorp Energy I L.P.'s (HEI) and Hilcorp Finance Co.'s proposed $500 million senior unsecured notes due 2033. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. The notes will rank equally in right of payment with the company's existing and future unsecured debt and will be guaranteed on an unsecured unsubordinated basis by HEI's restricted subsidiaries. The company intends to use proceeds from this offering to repay borrowings under its senior secured credit facility, as well as for general

...November 3, 2023 NEW YORK (S&P Global Ratings) Nov. 3, 2023--S&P Global Ratings today assigned its '##+' issue-level rating and '3' recovery rating to U.S.-based privately held oil and gas exploration company Hilcorp Energy I L.P.'s (HEI) and Hilcorp Finance Co.'s proposed $500 million senior unsecured notes due 2033. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. The notes will rank equally in right of payment with the company's existing and future unsecured debt and will be guaranteed on an unsecured unsubordinated basis by HEI's restricted subsidiaries. The company intends to use proceeds from this offering to repay borrowings under its senior secured credit facility, as well as for general partnership purposes. As of Sept. 29, 2023, HEI had about $990 million of outstanding borrowings under the credit facility. However, we expect HEI will subsequently draw on its credit facility to partially...

Ratings Action