On Aug. 3, 2007, Standard&Poor's Ratings Services affirmed the 'A' corporate credit rating on LOOP LLC following the company's proposed $120 million bond issuance (series 2007B). LOOP will issue the bonds as provided in the Gulf Opportunity Zone Act of 2005. The outlook is stable. LOOP will use the proceeds to expand the Clovelly Tank Facility by six 600,000-barrel aboveground storage tanks and for other capital expenditure programs. Pro forma for the new debt issuance, LOOP will have approximately $518 million in debt, adjusted for operating leases and postretirement benefit obligations. The ratings on LOOP reflect its dominant market share as the sole deepwater offshore port in the Gulf of Mexico and relatively stable and predictable cash flows.
