S&P rates M6, loan B+

S&P said it assigned B+ ratings to M6 ETX Holdings II MidCo LLC and its planned $600 million term loan due 2029. The recovery rating on the loan is 3, indicating meaningful (50%-70%; rounded estimate: 65%) recovery in default.

“Our B+ issuer credit rating reflects M6 ETX's long-term contract portfolio with a large share of ship-or-pay contracts and its investment grade customers, as well as its developed asset base that requires minimal capital expenditure (capex). However, the company has relatively small scale and scope of operations, and it is exposed to volumetric and commodity price risks. We expect leverage at 4.7x in 2022, declining to 4x in 2023,” the agency said in a press release.

The outlook is stable.

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