Moody’s rates Prairie loan, notes B3

Moody’s Investors Service said it assigned B3 ratings to Prairie Acquiror LP’s planned $1.05 billion backed senior secured term loan B2 and a B3 rating to Prairie's proposed $400 million senior secured notes, both of which are due in 2029.

The agency also affirmed Prairie Acquiror’s B1 corporate family rating, B1-PD probability of default rating and B3 backed senior secured term loan rating. Moody's also affirmed Tallgrass Energy Partners, LP's B1 senior unsecured notes rating and revised the outlook for both issuers to negative from stable.

The term loan and notes will be used to repay Prairie's $1.428 billion term loan, which matures in March 2026.

"The outlook change reflects our expectation that Prairie's consolidated leverage is poised to exceed our downgrade threshold through 2025, due to the more than $1 billion of added debt it will need to construct its Trailblazer CO2 conversion project. If the project comes online as scheduled and performs as the company expects, leverage should recede back to levels consistent with the rating in 2026," said John Thieroff, a Moody's senior credit officer, in a press release.

"The outlook change also reflects the execution risk associated with the project," Thieroff added.

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