Research Update: Summit Midstream Partners L.P. Upgraded To 'B+'; Proposed Notes Rated 'B+'; Outlook Stable

On July 17, 2024, Summit Midstream Partners L.P. (SMLP) announced the refinancing and extension of their capital structure by upsizing its existing asset-based lending (ABL) facility to $500 million from $400 million and issuing $500 million of senior secured second-lien notes, both with 2029 maturities. The company intends to use proceeds from this transaction to repay the existing notes due in 2025 and 2026, with the remaining amount going toward applicable fees. As a result, we raised our issuer credit rating on SMLP to 'B+'. We also assigned a 'B+' issue-level rating on SMLP's proposed notes with a '3' recovery rating. The notes are being issued by Summit Midstream Holdings LLC. At the same time, our 'D' issue-level rating remains

...- On July 17, 2024, Summit Midstream Partners L.P. (SMLP) announced the refinancing and extension of their capital structure by upsizing its existing asset-based lending (ABL) facility to $500 million from $400 million and issuing $500 million of senior secured second-lien notes, both with 2029 maturities. The company intends to use proceeds from this transaction to repay the existing notes due in 2025 and 2026, with the remaining amount going toward applicable fees. - As a result, we raised our issuer credit rating on SMLP to 'B+'. - We also assigned a 'B+' issue-level rating on SMLP's proposed notes with a '3' recovery rating. The notes are being issued by Summit Midstream Holdings LLC. - At the same time, our 'D' issue-level rating remains on SMLP's preferred stock, based on our continued view that the ongoing dividend deferral is a default on the security. - The stable outlook reflects our expectation for S&P Global Ratings-adjusted debt to EBITDA of 4.5x-4.75x over the next 12 months,...

Research Update