Moody’s: WildHorse unaffected by note add-on

Moody's Investors Service said that WildHorse Resource Development Corp.’s proposed $200 million 6 7/8% add-on senior unsecured notes due 2025 will not affect the company's credit ratings or positive outlook.

The add-on notes are being offered as an addition to the existing $500 million 6 7/8% senior unsecured notes due 2025 that the company initially issued in February 2017.

The proposed $200 million 2025 add-on notes and the existing $500 million 2025 notes are rated Caa1 LGD5, in accordance with Moody's Loss Given Default (LGD) methodology, two notches below the B2 corporate family rating, reflecting their effective subordination to WildHorse's senior secured borrowing base revolving credit facility, the agency explained.

The facility's borrowing base was increased to $1.05 billion from October's $875 million following March's scheduled semi-annual redetermination, which included the impact of the North Louisiana divestiture.

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