Research Update: M6 ETX Holdings II MidCo LLC Ratings Affirmed On Announced $150 Million Term Loan B Add-On, Outlook Stable

M6 ETX Holdings II MidCo LLC (M6 ETX), an affiliate company of M6 Midstream LLC (Momentum), today announced a $150 million add-on to its outstanding $597 million term loan B (TLB) due 2029. The company will use the net proceeds from this add-on to repay the $137 million of outstanding borrowings on Align Midstream's, which is merging with M6 ETX, revolving credit facility (RCF). Therefore, we affirmed our 'B+' issuer credit rating on M6 ETX and our 'B+' issue-level rating on its TLB. Our '3' recovery rating remains unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. The stable outlook reflects our view that the company's S&P Global Ratings-adjusted debt to

...- M6 ETX Holdings II MidCo LLC (M6 ETX), an affiliate company of M6 Midstream LLC (Momentum), today announced a $150 million add-on to its outstanding $597 million term loan B (TLB) due 2029. The company will use the net proceeds from this add-on to repay the $137 million of outstanding borrowings on Align Midstream's, which is merging with M6 ETX, revolving credit facility (RCF). - Therefore, we affirmed our 'B+' issuer credit rating on M6 ETX and our 'B+' issue-level rating on its TLB. Our '3' recovery rating remains unchanged, indicating our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. - The stable outlook reflects our view that the company's S&P Global Ratings-adjusted debt to EBITDA will be 4.5x in 2023 before declining to 3.5x in 2024....

Research Update