NGL Energy Partners LP (NGL)

[jugs]

From Moody's:

Approximately $450 million of new notes rated
New York, February 16, 2017 -- Moody's Investors Service (Moody's) downgraded NGL Energy Partners LP's (NGLEP) Corporate Family Rating (CFR) to B1 from Ba3 and Probability of Default Rating to B1-PD from Ba3-PD. At the same time, Moody's affirmed NGLEP's B2 senior unsecured notes and assigned a B2 rating to its proposed senior notes due 2025. Moody's also affirmed the SGL-3 Speculative Grade Liquidity Rating. The rating outlook was revised to stable from negative.

On February 15, 2017, NGLEP announced that it has concurrently launched a $450 notes offering and a 8.8 million common unit offering while extending the maturity date of its two revolving credit facilities to 2021.

"The downgrade reflects Moody's view that NGLEP will continue to operate with high financial leverage at least through mid-2018 in a recovering but challenged midstream industry environment," said Sajjad Alam, Moody's Senior Analyst. "Despite efforts to reduce leverage since 2015 through asset sales, distribution reduction, and preferred and common equity issuances, NGLEP's debt/EBITDA will likely remain above 5x in 2017."