S&P: Superior Plus notes BB

S&P said it assigned a BB rating and 3 recovery rating to Superior Plus LP's proposed C$200 million senior unsecured notes due 2024.

The 3 recovery rating reflects indicates 65% expected default recovery.

The company’s BB long-term corporate credit rating and stable outlook are unchanged.

The proceeds and a drawing on its credit facility will be used to fund the C$412 million acquisition of Gibson Energy Inc.'s industrial propane business, which was announced Feb. 13, S&P said.

The proposed notes will rank equally with the company's C$200 million of senior unsecured notes outstanding, the agency said.

S&P said it believes the acquisition of Gibson Energy's industrial propane business provides incremental market access.

But, the expansion benefits are not sufficient to strengthen Superior Plus' overall business risk profile, the agency said.

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