BCP Renaissance Parent LLC

Overview Key strengths Key risks Receives 32% of Rover?s highly stable distributed cash. Relies on subordinated cash flows from Rover to service its financial obligations. Term loan is subject to a 50%-75% mandatory excess cash flow sweep that supports gradual deleveraging. Highly leveraged credit metrics over our forecast period BCP owns a 32% interest in Rover and does not have other substantive assets to service its $1.0 billion outstanding term loan B (TLB) due in 2028. Our assessment of the company's credit profile incorporates its financial ratios, Rover's cash flow stability, as well as BCP's ability to influence Rover's financial policy and to liquidate its investment in Rover to repay the term loan. We assess these factors as either positive,

...The rating on BCP Renaissance Parent LLC is based on the differentiated credit quality between BCP and ET Rover Pipeline LLC. BCP owns a 32% interest in Rover and does not have other substantive assets to service its $1.0 billion outstanding term loan B (TLB) due in 2028. Our assessment of the company's credit profile incorporates its financial ratios, Rover's cash flow stability, as well as BCP's ability to influence Rover's financial policy and to liquidate its investment in Rover to repay the term loan. We assess these factors as either positive, neutral, or negative. We expect BCP will receive stable distributions with support from Rover's high utilization rate, long-term take-or-pay contracts, and low levels of maintenance capital requirements. Rover is roughly 85% contracted with take-or-pay agreements with long-term contracts. The pipeline's average counterparty credit quality has continued to improve over the past year through merger and acquisitions (M&A) activity among its upstream...

Full Report