Summary: A.I. Candelaria Spain

The rating on A.I. Candelaria Spain's senior secured notes incorporates the share pledge that consists of 100% of its equity interests in Oleoducto Central, S.A. (OCENSA), and no additional debt at the level of Candelaria. The company used the proceeds of the October 2018 $650 million issuance to fund the debt service reserve account, repay the existing senior secured loan from its parent, A.I. Candelaria Luxemburg (not rated), and to pay extraordinary dividends to the parent's shareholders. Candelaria is a Spain-based holding company with the sole purpose of owning a 22.352% non-controlling stake in OCENSA (BBB-/Stable/--). OCENSA owns and operates Colombia's main crude oil pipeline that extends from the Llanos and Magdalena basins to the port of Coveñas, a crude

...The rating on A.I. Candelaria Spain's senior secured notes incorporates the share pledge that consists of 100% of its equity interests in Oleoducto Central, S.A. (OCENSA), and no additional debt at the level of Candelaria. The company used the proceeds of the October 2018 $650 million issuance to fund the debt service reserve account, repay the existing senior secured loan from its parent, A.I. Candelaria Luxemburg (not rated), and to pay extraordinary dividends to the parent's shareholders. Candelaria is a Spain-based holding company with the sole purpose of owning a 22.352% non-controlling stake in OCENSA (###-/Stable/--). OCENSA owns and operates Colombia's main crude oil pipeline that extends from the Llanos and Magdalena basins to the port of Cove±as, a crude oil export facility. Colombia-based oil and gas company Ecopetrol S.A. (###-/Stable/--) controls OCENSA through a 72.6% stake. The '##-' issue-level rating mainly incorporates Candelaria's reliance on dividend payments from OCENSA,...

Summary