Howard Midstream Energy Partners LLC Assigned 'B+' Rating, Stable Outlook; Proposed Notes Rated

Howard Midstream Energy Partners LLC (HEP) is issuing $400 million of senior unsecured notes due 2027. HEP plans to use the net proceeds to repay a portion of the outstanding borrowings on its revolving credit facility (not rated). S&P Global Ratings assigned its 'B+' issuer credit rating to HEP. The outlook is stable. At the same time, we assigned our 'B' issue-level and '5' recovery ratings to HEP's proposed $400 million senior unsecured notes. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of a payment default. The stable outlook reflects our expectation that HEP will maintain ample liquidity and adjusted EBITDA will be approximately $220 million-$235 million in 2021 and 2022,

...December 7, 2021 - Howard Midstream Energy Partners LLC (HEP) is issuing $400 million of senior unsecured notes due 2027. HEP plans to use the net proceeds to repay a portion of the outstanding borrowings on its revolving credit facility (not rated). - S&P Global Ratings assigned its 'B+' issuer credit rating to HEP. The outlook is stable. - At the same time, we assigned our 'B' issue-level and '5' recovery ratings to HEP's proposed $400 million senior unsecured notes. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of a payment default. - The stable outlook reflects our expectation that HEP will maintain ample liquidity and adjusted EBITDA will be approximately $220 million-$235 million in 2021 and 2022, increasing in 2023 with the completion of material growth projects. - We also recommend applying E, S, G indicators of E-3, S-2, G-2, reflecting climate transition risks. NEW YORK (S&P Global Ratings) Dec. 7, 2021--S&P...

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