Research Update: Summit Midstream Partners L.P. Upgraded To 'B' From 'SD' On Refinancing, Outlook Stable; New Secured Notes Rated 'BB-'

On Oct. 13, 2021, Summit Midstream Partners L.P. (SMLP) launched a refinancing transaction that involves its wholly owned subsidiaries Summit Midstream Holdings LLC and Summit Midstream Finance Corp. issuing $700 million of new second-priority secured notes due 2026, which the company will use the proceeds from to repay a portion of the outstanding borrowings under its revolving credit facility and its 5.50% senior unsecured notes, both of which mature in 2022. The partnership is also structuring a new $400 million asset-based lending (ABL) revolver (unrated) and will draw approximately $297 million on the facility at the close of the transaction to repay the remaining portion of its 2022 maturities. Therefore, we raised our issuer credit rating on SMLP to 'B'

...- On Oct. 13, 2021, Summit Midstream Partners L.P. (SMLP) launched a refinancing transaction that involves its wholly owned subsidiaries Summit Midstream Holdings LLC and Summit Midstream Finance Corp. issuing $700 million of new second-priority secured notes due 2026, which the company will use the proceeds from to repay a portion of the outstanding borrowings under its revolving credit facility and its 5.50% senior unsecured notes, both of which mature in 2022. The partnership is also structuring a new $400 million asset-based lending (ABL) revolver (unrated) and will draw approximately $297 million on the facility at the close of the transaction to repay the remaining portion of its 2022 maturities. - Therefore, we raised our issuer credit rating on SMLP to 'B' from '##' (selective default) and our issue-level rating on its senior unsecured debt to 'B-' from '###+'. We also revised our recovery rating on the unsecured debt to '5' from '3'. The '5' recovery rating indicates our expectation...

Research Update