Research Update: Summit Midstream Partners L.P. Downgraded To 'SD' On Distressed Debt Exchange Settlement

On September 24, Summit Midstream Partners L.P. (SMLP) settled separate modified Dutch Auctions retiring approximately $33.5 million of its 2022 senior unsecured notes and $38.7 million of its 2025 senior unsecured notes in exchange for approximately $72.2 million in cash. S&P Global Ratings considers these transactions distressed, because of the discounted trading levels and noteholders receiving less than the original promise. As a result, we are lowering the issuer credit rating on SMLP to 'SD' (selective default) from 'CC'. We are also lowering our issue-level rating on Summit Midstream Holdings LLC's senior unsecured debt to 'D' from 'CC'. We are affirming our 'C' rating on SMLP's preferred stock because it is excluded from these transactions. Summit Midstream Partners Holdings LLC

...- On September 24, Summit Midstream Partners L.P. (SMLP) settled separate modified Dutch Auctions retiring approximately $33.5 million of its 2022 senior unsecured notes and $38.7 million of its 2025 senior unsecured notes in exchange for approximately $72.2 million in cash. - S&P Global Ratings considers these transactions distressed, because of the discounted trading levels and noteholders receiving less than the original promise. - As a result, we are lowering the issuer credit rating on SMLP to '##' (selective default) from '##'. We are also lowering our issue-level rating on Summit Midstream Holdings LLC's senior unsecured debt to 'D' from '##'. - We are affirming our 'C' rating on SMLP's preferred stock because it is excluded from these transactions. - Summit Midstream Partners Holdings LLC (SMP Holdings) remains, in our view, an unrestricted nonstrategic subsidiary of the partnership. The term debt has no guarantees and is non-course to SMLP and excluded from these tender offers....

Research Update