Summit Midstream Partners L.P. Downgraded To 'CC' On Distressed Exchange Tender Offer - S&P Global Ratings’ Credit Research

Summit Midstream Partners L.P. Downgraded To 'CC' On Distressed Exchange Tender Offer

Summit Midstream Partners L.P. Downgraded To 'CC' On Distressed Exchange Tender Offer - S&P Global Ratings’ Credit Research
Summit Midstream Partners L.P. Downgraded To 'CC' On Distressed Exchange Tender Offer
Published Sep 02, 2020
3 pages (1654 words) — Published Sep 02, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

Summit Midstream Partners L.P. (SMLP) has announced a proposed exchange tender offer in two modified Dutch Auctions for its senior unsecured notes due in 2022 and 2025. The exchange is being offered at a significant discount to par, and is viewed as distressed. We recognize the partnership is taking progressive steps to continue to clean up the balance sheet, however noteholders are being offered less than the original promise. As a result, we are lowering our issuer credit rating on SMLP to 'CC' from 'CCC'. The outlook is negative. We are lowering our issue-level rating on Summit Midstream Holdings LLC's senior unsecured debt to 'CC' from 'CCC', reflecting our '4' recovery rating that reflects our expectation of average (30%-50%; rounded

  
Brief Excerpt:

...September 2, 2020 - Summit Midstream Partners L.P. (SMLP) has announced a proposed exchange tender offer in two modified Dutch Auctions for its senior unsecured notes due in 2022 and 2025. - The exchange is being offered at a significant discount to par, and is viewed as distressed. We recognize the partnership is taking progressive steps to continue to clean up the balance sheet, however noteholders are being offered less than the original promise. - As a result, we are lowering our issuer credit rating on SMLP to '##' from '###'. The outlook is negative. - We are lowering our issue-level rating on Summit Midstream Holdings LLC's senior unsecured debt to '##' from '###', reflecting our '4' recovery rating that reflects our expectation of average (30%-50%; rounded estimate: 30%) recovery in the event of a default. - We are affirming our 'C' rating on SMLP's preferred stock. - The negative outlook reflects our expectation that we will lower the issuer credit rating to '##' (selective default)...

  
Report Type:

Ratings Action

Issuer
Summit Midstream Partners L.P.
GICS
Oil & Gas Storage & Transportation (10102040)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Summit Midstream Partners L.P. Downgraded To 'CC' On Distressed Exchange Tender Offer" Sep 02, 2020. Alacra Store. May 04, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Summit-Midstream-Partners-L-P-Downgraded-To-CC-On-Distressed-Exchange-Tender-Offer-2506658>
  
APA:
S&P Global Ratings’ Credit Research. (). Summit Midstream Partners L.P. Downgraded To 'CC' On Distressed Exchange Tender Offer Sep 02, 2020. New York, NY: Alacra Store. Retrieved May 04, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Summit-Midstream-Partners-L-P-Downgraded-To-CC-On-Distressed-Exchange-Tender-Offer-2506658>
  
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