Third Coast Midstream Heads Towards Default

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On November 12, 2020, S&P Global Ratings lowered its issuer credit rating on Third Coast Midstream LLC to CCC+ from B- and its senior unsecured notes rating to B- from B. Third Coast Midstream faces near-term refinancing risks related to the 2021 maturities of its revolving credit facility ($86.5 million currently outstanding) and $425 million senior unsecured notes, according to the ratings agency. S&P Global believes that a default could occur in the next 12 months. The Company has extended the maturity of its revolving credit facility to September 15, 2021, or 91 days before the maturity of its senior unsecured notes. Despite its successful revolver maturity extension, the ratings agency believes that the Company has limited time and liquidity to refinance its senior unsecured notes, which mature in December 2021.

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