Research Update: Glass Mountain Pipeline LLC Downgraded To 'B-' From 'B' Following Term Loan B Add-On; Outlook Stable

Glass Mountain Pipeline Holdings LLC has issued a $129 million add-on to its existing term loan B due 2024. The holding company will use proceeds from the issuance along with a committed equity contribution from the financial sponsor to fund the southern extension of its crude oil pipeline system. We are lowering our issue-level rating to 'B-' from 'B' and maintaining the '3' recovery rating on Glass Mountain Pipeline Holdings LLC's upsized $425 million senior secured term loan B facility. At the same time, we are lowering our issuer credit rating on Glass Mountain Pipeline LLC to 'B-' from 'B'. The outlook is now stable. Glass Mountain Pipeline LLC is the operating entity that fully guarantees the debt issued at

...+ Glass Mountain Pipeline Holdings LLC has issued a $129 million add-on to its existing term loan B due 2024. The holding company will use proceeds from the issuance along with a committed equity contribution from the financial sponsor to fund the southern extension of its crude oil pipeline system. + We are lowering our issue-level rating to 'B-' from 'B' and maintaining the '3' recovery rating on Glass Mountain Pipeline Holdings LLC's upsized $425 million senior secured term loan B facility. + At the same time, we are lowering our issuer credit rating on Glass Mountain Pipeline LLC to 'B-' from 'B'. The outlook is now stable. Glass Mountain Pipeline LLC is the operating entity that fully guarantees the debt issued at the holding company level. + The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. We have revised our recovery estimate on the upsized term loan B to 50% from 65%. + The stable outlook...

Research Update