Research Update: Summit Midstream Partners LP And Summit Midstream Partners Holdings LLC Downgraded On Distressed Debt Repurchase

On June 18, Summit Midstream Partners LP (SMLP) announced it repurchased approximately $90 million of its 2022 senior unsecured notes and 2025 senior unsecured notes for approximately $50 million in cash. S&P Global Ratings considers this a distressed transaction because of the discounted trading levels and noteholders receiving less than the original promise of the securities. As a result, we are lowering the issuer credit rating on SMLP to 'SD' (selective default) from 'CCC'. We are also lowering our issue-level rating on Summit Midstream Holdings LLC's senior unsecured debt to 'D' from 'CCC-'. We are affirming our 'C' rating on SMLP's preferred stock and placing it on CreditWatch with negative implications to highlight potential additional ratings pressure if the preferred

...- On June 18, Summit Midstream Partners LP (SMLP) announced it repurchased approximately $90 million of its 2022 senior unsecured notes and 2025 senior unsecured notes for approximately $50 million in cash. - S&P Global Ratings considers this a distressed transaction because of the discounted trading levels and noteholders receiving less than the original promise of the securities. - 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 and placing it on CreditWatch with negative implications to highlight potential additional ratings pressure if the preferred equity exchange (settlement date close July 22) is executed. We could view this exchange as a selective default as holders would receive less than par. - SMP Holdings remains, in our view, an unrestricted...

Research Update