MUMBAI (Thomson Financial) - Fitch Ratings said it has assigned a 'BBB-'
rating to TEPPCO Partners LP's 1 bln usd senior unsecured notes.
The sale was split into three parts comprising 250 mln usd 5.9 pct notes due
2013, 350 mln 6.65 pct notes due 2018 and 400 mln 7.55 pct senior notes due
2038.
The proceeds will be used to repay about 1 bln usd outstanding on TPP's
senior unsecured term credit agreement due Dec 2008.
Repayment of the borrowings will result in the termination of the Term Credit
Agreement as amounts repaid may not be re-borrowed.
Fitch said the ratings are based on the stability and predictability of cash
flows from the company's pipeline, transportation, gathering and storage
operations. The credit is further strengthened by the quality and diversity of
its underlying businesses, high percentage of asset-based revenues and
disciplined approach to selecting and funding capital investments in those
assets.
TFN.newsdesk@thomson.com
jro
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