Howard Midstream Energy Partners LLC's Proposed $500 Million Senior Unsecured Notes Rated 'B+' (Recovery Rating: '5')

NEW YORK (S&P Global Ratings) June 6, 2024--S&P Global Ratings today assigned its 'B+' issue-level rating and '5' recovery rating to Howard Midstream Energy Partners LLC's (HEP) proposed $500 million senior unsecured notes. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 25%) recovery in the event of a default. Concurrent with the launch of this offering, the company commenced a cash tender offer for its outstanding $400 million notes due 2027. HEP plans to use the net proceeds from this offering to fund the tender, redeem any outstanding notes following the consummation of the tender, or to repay outstanding borrowings under its revolving credit facility. The company will use any remaining proceeds for general corporate purposes.

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